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(LEAD) CJ Cheiljedang Q3 net profit up 6.9 pct on strong global business

Earnings 17:23 November 14, 2022

(ATTN: RECASTS throughout with more details; CHANGES headline; ADDS photo)

SEOUL, Nov. 14 (Yonhap) -- South Korean food giant CJ Cheiljedang Corp. on Monday said its third-quarter net profit grew 6.9 percent on strong global business and improved profitability.

Net income came to 225.8 billion won (US$170.5 million) on a consolidated basis for the three months ending in September, compared with 211.2 billion won a year earlier, the company said in a regulatory filing.

Operating profit for the July-September period rose 11.8 percent on-year to 484.2 billion won. Sales increased 16.9 percent to 8.01 trillion won.

The food-to-entertainment giant attributed the hike in net income to its strong global businesses.

CJ Cheiljedang's food business' operating profit increased 12.5 percent on-year to 209.3 billion won, and sales rose 18.4 percent to 3.6 trillion won. This is the first time its quarterly revenue surpassed the 3 trillion mark, it said.

Improved profitability and the popularity of K-food products under its "Bibigo" brand in the United States, Europe and China led to a strong performance, it said.

Its bio business was robust, despite ongoing cost pressures. Sales and operating profit both rose over 25 percent on-year from strong demand for its amino acid products.

CJ's livestock and feed making affiliate saw a 94.3 percent jump in operating profits, as cost of livestock rose in Vietnam and Indonesia.

"We will focus on strengthening new business areas and high-value products, while securing structural competitiveness by investing in research and development," the company said.

On Sunday, CJ Cheiljedang said it has formed a new business division called "Food & Nutrition Tech" to focus on four future growth engines -- bio degradable packaging materials, health supplements, alternative protein and cultured meat -- with a revenue target of 2 trillion won by 2025.

This file photo shows the headquarters of the country's food and entertainment giant CJ Group in central Seoul. (Yonhap)

This file photo shows the headquarters of the country's food and entertainment giant CJ Group in central Seoul. (Yonhap)


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