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CJ Cheiljedang Q2 net jumps 18-fold on sale of healthcare unit

All News 17:27 August 08, 2018

SEOUL, Aug. 8 (Yonhap) -- CJ Cheiljedang Corp., South Korea's leading food manufacturer, said Wednesday its net profit surged 18-fold in the second quarter of this year from a year earlier, driven by proceeds from the sale of its healthcare unit.

Net income came to 783 billion won (US$700 million) in the April-June period, up from 43 billion won posted a year earlier, the company said in a regulatory filing.

In April, CJ Cheiljedang sold its wholly-owned CJ Healthcare Corp. to Kolmar Korea Co., an original development manufacturing cosmetics firm, for 1.31 trillion won.

CJ Cheiljedang said its operating profit gained 12.3 percent on-year to 184.6 billion won and sales were up 13.9 percent to 4.45 trillion won over the period.

Apart from the divestiture, robust sales growth from the processed food and bio divisions contributed to the firm's stellar earnings.

In recent years, CJ Cheiljedang has been focusing on manufacturing processed foods and food additives, both of which are faring well on the back of robust consumer demand for instant meals.

Shares in CJ Cheiljedang fell 1.16 percent to 339,500 won on the main bourse on Wednesday, underperforming the broader KOSPI's 0.06 percent gain. The earnings were released after the stock market closed.


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