Seoul: South Korean food company CJ Cheiljedang Corp. announced a significant increase in its second-quarter net profit, which rose by 41.5 percent from the previous year, largely attributed to non-operating gains and reduced costs.
According to Yonhap News Agency, CJ Cheiljedang's net profit for the three months ending June 30 increased to 209.1 billion won (US$150.1 million), up from 147.8 billion won during the same period last year. Despite this rise in net profit, the company's operating profit saw a decline of 7.9 percent, reaching 353.1 billion won compared to 383.5 billion won a year earlier. Sales remained stable at 7.23 trillion won.
A company spokesperson highlighted that while there was growth in the animal feed and high-end amino acid segments for livestock, these gains were insufficient to counterbalance the decline in the food sector, which has been affected by a prolonged slump in the domestic market. CJ Feed and Care, the livestock feed affiliate wholly owned by CJ Cheiljedang, experienced a 25 percent on-year increase in operating profit, totaling 42.6 billion won in the second quarter.
Looking ahead, CJ Cheiljedang plans to introduce more localized dumpling products under its Bibigo brand, along with other food items, in international markets. The company also intends to enhance promotions for amino acids and savory ingredients to drive sales growth.
In the first half of 2025, CJ Cheiljedang's net income decreased by 13 percent to 262.5 billion won, compared to 302.4 billion won in the previous year. Operating profit fell by 10.2 percent to 682.2 billion won from 759.5 billion won, while sales experienced a slight dip of 0.1 percent to 14.44 trillion won from 14.45 trillion won.
CJ Cheiljedang currently operates 33 overseas plants, including 20 in the United States, four in Japan, four in China, three in Vietnam, and one each in Germany and Australia. Additionally, the company runs 17 plants within South Korea. To expand its production capabilities, CJ Cheiljedang is constructing three new facilities in Japan, Hungary, and the U.S. state of South Dakota.