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[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ CheilJedang's consolidated operating profit fell more than 30% in the second quarter due to cost burdens and other factors. Except for CJ Korea Express, operating profit plunged 40%, the report showed.
CJ CheilJedang announced on the 7th that its operating profit in the second quarter of this year was 344.6 billion won, down 31.7% from the second quarter of last year.
Sales in the second quarter fell 4 percent to 7.2194 trillion won. Net profit was estimated to be 127.5 billion won, down 49.6%.
CJ CheilJedang's operating profit fell 40.1% to 235.8 billion won in the second quarter, excluding CJ Korea Express, a courier and logistics subsidiary. Sales fell 3.7% to 4.4233 trillion won.
CJ CheilJedang said, "Food sales at home and abroad have increased despite difficult external conditions such as cost burdens, and the bio and food nutrition technology (FNT) sector has also become more competitive with high-yield specialty businesses at the center."
By business sector, food business sales rose 5 percent to 2.7322 trillion won and operating profit fell 15 percent to 142.7 billion won. Domestic food sales, which declined in the first quarter, rose 2% to KRW 1.4218 trillion, shifting to an increase year-on-year. Overseas sales grew 8% to 1.31 trillion won. In the case of domestic businesses, due to higher exchange rates than expected, the cost burden was partially reduced with efforts to optimize the profit structure, and the profit reduction was limited due to improved profitability in overseas markets.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
