CJ CheilJedang's net profit falls 51.6 percent in first quarter

CJ CheilJedang’s net profit fell 51.6 percent on year in the first quarter to 218.76 billion won ($195.32 million), mainly due to a one-off item related to a payment in the first quarter of 2020 for a property disposal.

Sales rose 6 percent during the same period to 6.18 trillion won,

The company said net profit plummeted because it received payment for sale of a property in Gangseo District, western Seoul, in the first quarter last year.

Performances at most of its brands and subsidiaries were strong in the first quarter.

Sales from CJ CheilJedang’s food business rose 2 percent on double-digit growth of the company’s key products, like Bibigo, known for its dumplings, and Hetbahn instant rice products. Operating profit of food business jumped 51.7 percent to 176.4 billion won.

Operating profit at the company’s bio business jumped 50.7 percent and sales rose 14.7 percent during the same period. The bio business provides food amino acids.

CJ Logistics, which is 40 percent owned by CJ CheilJedang, earlier reported a 64.1 percent rise in net profit and a fall of 17.3 percent on year in terms of operating profit.

Overseas sales, including those from Schwan’s, remained largely unchanged at 1.03 trillion won. Online sales jumped more than 20 percent.

CJ CheilJedang “will become a global leader through a preemptive development of innovative products and strategic research and development to prepare for the future,” said the company in a statement.

BY JIN MIN-JI [jin.minji@joongang.co.kr]