CJ CheilJedang reported 4.59 trillion won ($3.5 billion) in sales revenue, up 22.3% from the same period last year.
CJ CheilJedang recorded sales revenue of 4.59 trillion won ($3.5 billion) in the second quarter of this year, up 22.3% from the same period last year. These numbers are due to growth in its overseas Korean food and biotechnology businesses with the proportion of its overseas sales exceeding 65%. Operating profit rose 3.6% year-over-year to 393.4 billion won ($300 million) excluding CJ Logistics.
CJ CheilJedang also reported its consolidated second-quarter net profit including CJ Logistics on August 8. The companies recorded 7.52 trillion won ($5.74 billion) in revenue, up 19.1% from a year earlier, and 504.3 billion won ($385.2 million) in operating profit, up 7.4%.
The food business sector recorded 2.61 trillion won ($1.99 billion) in sales revenue (+17.8%) and 167.7 billion won ($128.1 million) in operating profit (+29.1%) driven by strong overseas sales of Korean food centered on the company’s bibigo brand.
Contrary to previous years, overseas business, rather than domestic business in South Korea was the key to the company’s growth and profit. Overseas sales revenue increased by 20% and operating profit drastically increased by more than 60%.
Major business countries, including the U.S. (Schwan’s), have conducted expansion strategies focused on utilizing global strategic products (GSPs)[1]. In addition, profitability has improved significantly due to cost structure efficiency. In the U.S., sales of dumplings and frozen ready meals increased by 67% and 60%, respectively.
By region, Korean food has expanded its market share not only in the U.S. (sales +21%), but also in Europe (+28%), China (+32%) and Japan (+16%). The overseas proportion of total food sales recorded an all-time high of about 47%.
Sales in the bio business sector, which is focused on green bio such as amino acids and seasoning components, rose 43.8% year-over-year to 1.32 trillion won ($1 billion). Operating profit increased 14.6% to 222.3 billion won ($169.8 million) which is the company’s highest quarterly profit ever. This is the first time that the operating profit in the bio business exceeded 200 billion won ($152.8 million) in the quarter – a monumental feat considering the difficulty in raw material sourcing and inflated prices.
CJ CheilJedang’s bio has expanded its sales mainly in North America, South America, and Europe, where the amino acid market is favorable. The company has further enhanced its market position based on its advanced compatible production technology and excellent position throughout the world. In addition, the company has secured new demand for high-yield specialty products through unique technical marketing that simultaneously provides products and solutions.
CJ Logistics records sales revenue of 3.1 trillion won in the second quarter of 2022
CJ Logistics announced that sales revenue in the second quarter of this year increased to 3.1 trillion won ($2.37 billion), up 14.2% from the second quarter of last year. Operating profit also increased 28.2% to 116.1 billion won ($88.7 million).
This growth in the sales revenue can be attributed to a rise in the volume of goods transported in the logistics and e-commerce sectors in addition to new business expansion in countries such as the United States, India and Vietnam.
Meanwhile, CJ Logistics’ sales revenue increased 10.2% to 5.99 trillion won ($4.58 billion) in the first half of this year compared to the same period last year, and its operating profit rose 38.3% to 191.8 billion won ($146.5 million).
CJ ENM records sales revenue of 1.19 trillion won ($911 million) in the second quarter of 2022
CJ ENM reported on August 4, that it recorded 1.19 trillion won ($911 million) in sales and 55.6 billion won ($42.5 million) in operating profit during the second quarter of 2022. Increased content volume together with improved global business competitiveness, led to a 31.3% year-over-year increase, but operating profit decreased 35.2% due to sluggish profitability.
Sales in the media sector rose 58.4% year-over-year to 722.8 billion won ($522.1 million) and operating profit fell 56.0% to 25.4 billion won ($19.4 million).
TV advertising maintained a solid growth trend with a 5.9% increase compared to the same period last year. This increase can be attributed to channel growth through enhancing the competitiveness of premium intellectual property (IP) such as “Our Blues”, “Alchemy of Souls” and “Yumi’s Cells Season 2”. During this period, content sales increased by up to 258.9% and TVING’s sales revenue also increased 122.1% year-over-year, driving sales growth.
Moreover, sales of premium content such as those produced by Endeavor Content, which was acquired last year by CJ ENM, nearly doubled (93.7% QoQ) from the previous quarter, contributing to an increase in sales in the media sector.
[1] Global strategic products: seven (7) strategic products including dumplings, chicken, cooked rice, rolls, Korean sauce, kimchi, seaweed leveraged to expand the global market share of Korean food
