[News Space=Reporter seungwon lee] CJ CheilJedang announced on the 10th that it recorded sales of KRW 17.871 trillion (-0.1%) and operating profit of KRW 1.0323 trillion (+26%) last year. Sales in the fourth quarter were KRW 4.475 trillion and operating profit was KRW 219.9 billion, up 39.2% year-on-year. (Excluding Korea Express)

CJ CheilJedang also disclosed its consolidated performance including Korea Express on the 10th. It recorded sales of KRW 29.3591 trillion (+1.2%) and operating profit of KRW 1.553 trillion (+20.2%).

The food business division posted sales of KRW 11.353 trillion (+0.8%) and operating profit of KRW 620.1 billion (-5.3%). Domestic food business sales, which suffered from sluggish domestic consumption and high cost burden, decreased by 1.8% to KRW 5.7716 trillion, but the solid growth of major processed foods such as rice and the expansion of online channel sales partially offset the business sluggishness.

In addition, it is evaluated that the company has secured a new growth engine in the domestic market that has entered the maturity stage with differentiated new products such as ‘Gome Sobaba Chicken’, ‘Whole Shrimp Dumplings’, and ‘Whole Squid Dumplings’.

The overseas food business recorded sales of KRW 5.5814 trillion (+3.6%), accounting for 49.2% of food sales. This is the highest level ever, and it is evaluated that the 'K-food new territory expansion' focused on last year has been successful. Growth continued in major regions such as North America, Europe, and Australia, and overseas sales of global strategic products such as kimchi (+38%), frozen rice (+22%), and dumplings (+18%) increased significantly.

North America recorded sales of KRW 4.7138 trillion. Bibigo dumplings, which ranked first in the North American market share, maintained their lead with a gap of more than three times that of the second-place brand, and Schwan's representative pizza brand 'Red Baron' also further solidified its top position.

In particular, Europe surpassed 100 billion won in annual sales for the first time. The main reason was the acceleration of expansion into new countries such as France and Spain, while expanding the products sold in major European distribution channels. In Australia, Bibigo achieved the success of entering Coles and IGA after Woolworths, and laid the foundation for selling Bibigo products in 80% of the stores of major local distributors.

The bio business division posted sales of KRW 4.2095 trillion (+1.8%) and operating profit of KRW 337.6 billion (+34.3%). The increased sales of high-margin products such as tryptophan and increased sales of specialty items led to improved profitability.

In particular, the sales ratio of high value-added specialty products such as arginine, valine, isoleucine, and histidine recorded the highest annual figure of 21%. Taste Enrich, which is leading the premium seasoning market, led the growth of specialty items by securing new customers such as global alternative meat and seasoning material manufacturers.

CJ Feed & Care, an independent feed and livestock corporation, recorded sales of KRW 2.3085 trillion and operating profit of KRW 74.7 billion. The increase in livestock sales prices in Indonesia and Vietnam, its main business countries, and efforts to stabilize manufacturing costs, including productivity improvements, led to an annual operating profit turnaround.

CJ CheilJedang plans to expand overseas expansion of domestic 'mega hit products' such as 'Sobaba Chicken' and 'Whole Shrimp Dumplings' in the future. In the mid- to long-term, it plans to accelerate 'K-food territory expansion' through the 'New North American Asian Food Plant' located in Sioux Falls, South Dakota, in the U.S. Midwest, which is scheduled to start operation in 2027, and the Hungary plant in Europe, which is scheduled to start operation next year.

The bio business division will continue to expand sales of tryptophan and specialties (arginine, valine, isoleucine, histidine, citrulline, taste enrichment, flavor enrichment). In particular, the goal is to respond quickly to market changes, as the price of lysine, which had been falling due to low-price offensives by Chinese companies for several years, is rapidly rebounding in the global market due to the imposition of EU anti-dumping duties.

Meanwhile, net income for the period decreased by 35.3% due to non-operating losses resulting from the evaluation of tangible and intangible assets. (Including Korea Express) There was no cash outflow, but this is the result of conservative accounting.

A CJ CheilJedang official said, “Based on the Only One spirit, we will further accelerate the expansion of our global business and quickly secure an innovative growth engine that will take responsibility for future food.”