CJ CheilJedang reports third quarter net profit of 225.8 billion won

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

CJ CheilJedang reported a net profit of 225.8 billion won ($170.6 million) in the third quarter, up 6.9 percent on year, driven by rising overseas sales of its food products.

The figure beat analyst expectations of a 206.7 billion won net profit compiled on FnGuide.

It logged revenue of 8.01 trillion won, up 16.9 percent on year. The figure also beat a 7.8-trillion-won revenue estimate compiled by analysts.

“We are expecting various uncertainties in the global economy, and we plan to cut costs by enhancing efficiency and promoting growth of our products both locally and globally,” the company said in a statement.

The earnings incorporate those of CJ Logistics, 40.16 percent owned by the food company. The logistics company’s net profit rose 52.2 percent on year to 60.2 billion won, with revenue rising 9.4 percent on year to 3.1 trillion won.

Sales from CJ CheilJedang’s food division rose 18.4 percent on year to 2.6 trillion won.

The rise was helped by rising sales of its Bibigo-brand products abroad, with overseas sales increasing 23 percent on year. Local sales rose 15 percent, largely due to online sales of the food products increasing 32 percent.

CJ CheilJedang plans to focus on its plant-based food products in the future, targeting the growing vegan population.

Its bio division’s sales rose 25.4 percent on year to 1.04 trillion won, with sales rising due to lysine prices increasing, boosted by rising international grain prices.

Sales from CJ Feed&Care, selling animal feed and pork products, rose 28.9 percent on year to 774.7 billion won. Operating profit jumped 94.3 percent on year to 17.1 billion won.

The company has been struggling due to rising grain prices increasing production costs for animal feed, but said operating profit rose this quarter due to price of pigs rising more. According to the company, in Vietnam, the price of pigs was 59.3 dong ($0.0024) per kilogram, up 43.9 percent on year.

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