CJ CheilJedang posts record-high operating profit in Q2

South Korean food giant CJ CheilJedang Corp. logged record-high quarterly operating profit in the second quarter of 2022 amid the growing popularity of Korean food in global markets.

The company, well known for its food brand Bibigo, announced its April-June quarter earnings on Monday, except for subsidiary CJ Logistics Corp.’s.

The food giant’s second-quarter operating profit reached 393.4 billion won ($301 million), up 3.6% from the same period of 2021. The revenue from the second quarter amounted to 4.59 trillion won, soaring 22.3% from a year earlier.   

But the second-quarter net profit came it at just 200.1 billion won, down 8.7% from a year earlier. It was hit by rising workforce, transport and sales management costs as well as grain prices and exchange rates, CJ said.

The company’s food business generated 2.61 trilllion won in revenue and 167.7 billion won in operating profit during the second quarter, up 17.8% and 29.1%, respectively, from a year ago. 

In its food business, some 47% of the revenue came from overseas. Overseas revenue and operating profit respectively increased by 20% and more than 60%, led by sales growth of chicken, instant rice, kimchi and seaweed.  

By country, the food business showed the biggest jump in revenue in China – a 32% increase from a year earlier. Quarterly revenue increased in Europe, the US and Japan by 28%, 21% and 16%, respectively. 

Its food sales in the US are particularly fast-growing, led by dumplings and frozen ready meals. The products respectively showed 67% and 60% increases in US market revenue, CJ said.

The company’s revenue from the bio business, focusing on amino acids, food additives and plant-based high protein, soared 43.8% to 1.32 trillion won in the second quarter. The bio business operating profit amounted to a record-high 222.3 billion won, up 14.6% from a year earlier.

Write to Soo-Jung Ha at agatha77@hankyung.com
Jihyun Kim edited this article.