CJ CheilJedang reported on the 13th that its consolidated operating profit for the first quarter of this year was 333.2 billion won, a decrease of 11.4% compared to the same period last year. Sales were 7.2085 trillion won, reflecting a 0.1% increase from the previous year, while net profit dropped 62.9% to 57.4 billion won.

CJ CheilJedang headquarters. /Courtesy of CJ CheilJedang

According to CJ CheilJedang on that day, first quarter sales excluding its subsidiary, Daehan Logistics, were 4.3625 trillion won, down 1.8% compared to the same period last year, and operating profit decreased 7.8% to 246.3 billion won.

The food division recorded sales of 2.9246 trillion won and operating profit of 128.6 billion won. While sales increased 3% from the previous year, operating profit fell by 30%. This was attributed to sluggish domestic consumption, resulting in stagnation in the domestic food business, which generated 1.4365 trillion won in sales.

Sales of the overseas food business reached 1.4881 trillion won, an 8% increase compared to the same period last year. As the recognition of the representative K-food brand Bibigo continued to rise, it achieved steady growth globally, including in North America, Europe, and Oceania.

In North America, which accounts for the largest share of overseas sales, stable growth was driven by the sales of ready-to-eat rice, pizza, and rolls, resulting in revenue of 1.247 trillion won. Sales also increased by more than 15% in China and Japan, driven by expanded sales of key products including dumplings.

In Europe and Oceania, sales surged 36% and 25%, respectively, due to the entry into major large retail channels and the expansion of product categories. New products, including dumplings, hot dogs, and gochujang (red chili paste) and ssamjang (thick sauce), were successively launched in Germany, the United Kingdom, France, and the Netherlands, with sales significantly increasing following entry into IGA, a large retail channel in Oceania, in addition to Woolworths and Coles.

The bio division reported sales of 895.4 billion won and operating profit of 82.5 billion won, both down 13% and 16%, respectively. The decrease in sales and operating profit was attributed to a base effect from high-value items such as tryptophan and specialty amino acids last year. CJ Feed&Care, an independent corporation in the livestock feed sector, recorded sales of 542.5 billion won and operating profit of 35.2 billion won.

CJ CheilJedang plans to enhance its customized strategies considering the market environment and consumer needs in various countries, advancing its global strategic product (GSP) large-scale development and expansion into new overseas territories. The domestic food business will accelerate its shift to digital platforms while aiming for qualitative growth through product innovation that reflects consumer trends such as health and convenience.

The bio division aims to improve performance by expanding sales of large amino acids such as lysine based on 11 production bases established globally, including in the United States, and diversifying the portfolio of Taste Enrich.