CJ CheilJedang’s net profit up 65.5 percent in the second quarter
The maker of Bibigo dumplings reported 6.3 trillion won ($5.63 billion) in consolidated sales in the April-June period, up 6.6 percent on year. Its consolidated net profit was 261.5 billion won.
CJ CheilJedang’s business divisions are largely divided into two areas: food and bio. Its subsidiaries include CJ Logistics.
The company said food business sales grew 1 percent on year to 2.21 trillion won. Operating profit of that business was up 3 percent to 129.9 billion won on the growth in demand for Bibigo and Hetbahn microwavable rice.
Processed food sales online were up 23 percent.
Bio business sales jumped 23.5 percent on year to 917.6 billion won, while operating profit of the business jumped 74.8 percent to 193.9 billion won.
Developing profitable food materials, like arginine, and the sale of fish feed helped CJ CheilJedang’s bio business. Arginine is a type of an amino acid.
“Recent rises in raw material price have made the food industry not easy, but the company is expected to show continued growth in the second half when the effect of their increased prices in processed foods start to show,” said Son Hyo-ju, an analyst at Hanwha Investment & Securities.
The company said it will “accelerate growth through the discovery of new growth engines and investment in research and development to prepare for the future.”
BY JIN MIN-JI [firstname.lastname@example.org]