CJ CheilJedang protects profitability despite cost pressures; Q3 operating profit up 6.9%

[Financial News] CJ CheilJedang continued its growth momentum in the third quarter of this year, buoyed by strong sales of global strategic products (GSPs), including dumplings and Hetbahn. Growth in its overseas food business and core ingredients division supported its results.
CJ CheilJedang said on the 10th that its third-quarter operating profit, excluding CJ Logistics, rose 6.9% year on year to 203 billion won. Revenue increased 5.7% to 4.23 trillion won.
On a consolidated basis, including its subsidiary CJ Logistics, operating profit fell 7.4% to 309.1 billion won, while revenue rose 7.0% to 7.3952 trillion won.
Operating profit in the Lifestyle Food Business Division was 118.7 billion won, similar to the same period last year. Revenue rose 3.8% to 2.5744 trillion won.
Of this, overseas sales increased 3.7% year on year to 1.5093 trillion won. Expanded sales of global strategic products (GSPs), including dumplings and Hetbahn, drove growth.
The Americas continued to grow 3% on stronger demand for key GSPs such as dumplings and Hetbahn, despite a smaller currency translation benefit following the decline in exchange rates. In Europe, sales rose 26% with the launch of new dumpling products and expanded distribution channels. In China, sales increased 8% as dumpling and frozen-rice sales grew, primarily through large warehouse clubs and online channels.
Domestic sales grew 3.9% to 1.0651 trillion won. Expanded sales of major products such as Hetbahn and Sobaba, along with high-growth products including Bibigo grilled fish (69%) and Beksul 1-Minute Ring (24%), drove growth.
A CJ CheilJedang representative said, “Although cost pressures from raw and subsidiary materials and logistics persisted, growth in domestic online and offline channels and our efforts to improve cost efficiency enabled us to defend profitability.”
Revenue in the Technical Materials Business Division rose 20.2% to 232.6 billion won. Expanded sales of specialty products such as Taste & Rich (TNR), a seasoning ingredient made using natural fermentation, and growth in the H&W division centered on probiotic brands and its functional portfolio drove results.
Biodegradable biomaterials (PHA) also continued to grow after securing large-scale customers. However, despite improved profitability for TNR, the division recorded an operating loss of 24.2 billion won, due to strategic pricing of nucleic acids and increased investment to develop markets for future growth products.
Revenue in the Core Ingredients Business Division rose 7.0% to 1.423 trillion won. Operating profit grew 36.0% to 108.5 billion won. Growth in specialty amino acids, led by arginine, and increased lysine sales in North America drove revenue growth.
A CJ CheilJedang representative said, “Building on the growth of global strategic products such as dumplings and Hetbahn, we will accelerate the expansion of our K-food footprint in key regions. We will strengthen the competitiveness of each business division by responding to the peak season for nucleic acids, expanding sales of amino acids for animal feed, and improving the profitability of future growth products.”


[email protected] Kim Seo-yeon Reporter