CJ CheilJedang (097950.KS) reported second-quarter revenue of 4.195 trillion won ($3.03 billion), excluding its CJ Logistics unit, up 10.2% from a year earlier, the company said in a regulatory filing on the 11th.
Operating profit fell 18.4% to 161.9 billion won over the same period. The company achieved top-line growth led by its overseas food and bio businesses, but weak domestic demand and rising raw material and packaging costs weighed on earnings.
CJ CheilJedang posted a net loss of 23.9 billion won, reflecting non-operating losses including foreign exchange trading and derivatives valuation losses tied to higher exchange rates and grain prices.
Revenue at the food division rose 5.8% to 2.8441 trillion won, driven by overseas growth. Overseas food sales climbed 10.1% to 1.5072 trillion won, accounting for more than half of total food revenue. By region, sales grew across major markets: 10% in the Americas, 19% in Europe, 21% in the Asia-Pacific and 5% in China. Operating profit at the division, however, fell 21.3% to 70.9 billion won as higher packaging costs from elevated oil prices combined with rising raw material prices.
The bio division posted faster growth than the food business, with revenue up 20.8% to 1.3509 trillion won. Operating profit, by contrast, dropped 15.9% to 91 billion won. Intensifying market competition in tryptophan, a high-margin product, along with a negative base effect from strong profitability a year earlier, weighed on results.
