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

Earnings 17:23 November 14, 2022

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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.