CJ CheilJedang's net profit rises 13.5 percent in 2021

CJ CheilJedang headquarters in Jung District, central Seoul [CJ CHEILJEDANG]

CJ CheilJedang's consolidated net profit rose 13.5 percent 892.3 billion won ($745.8 million) in 2021, slightly beating market expectations.

The FnGuide market consensus was for a net profit of 830.3 billion won.

Consolidated revenue rose 8.4 percent to 26.3 trillion won, also beating market expectations of 25.9 trillion won.

The consolidated earnings include those of CJ Logistics, 40.16 percent owned by the food company. The logistics company logged a net profit of 158.3 billion won in 2020, up 11 percent on year. Annual revenue rose 5.2 percent to 11.3 trillion won.

CJ CheilJedang's food business reported revenue of 9.57 trillion won, up 6.7 percent. Operating profit rose 8.8 percent on year to 554.7 billion won.

The company said the popularity of its food products abroad, especially dumplings, helped.

Overseas sales of dumplings in the United States rose 27 percent on year. Sales rose 47 percent in China, boosted by sales via TikTok and the company's e-commerce website. Sales in Europe rose 72 percent and in Japan 96 percent as its products were being offered at convenience stores in the country.

Revenue of its bio business, producing food additives and plant-based protein, rose 25.1 percent to 3.7 trillion won due to popularity of additives TastNrich and FlavorNrich. Operating profit jumped 51.6 percent to 473.4 billion won.

CJ Feed & Care, an animal feed company wholly owned by CJ CheilJedang, logged revenue of 2.45 trillion won, up 10.6 percent on year, but operating profit fell 31.3 percent to 150.6 billion won.

The company blamed rising raw material costs, such as grain, and falling prices for pigs.

CJ CheilJedang plans to focus on promoting its vegan brand PlanTable abroad this year and its biopharmaceutical subsidiary CJ Bioscience. The bio company, 44 percent owned by CJ CheilJedang, was started in January with plans to specialize in drugs and health supplements based on microbiomes.

The results were reported after the close of the market Monday.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]