CJ Cheiljedang Q3 Net Profit Plummets 48.3% Due to Rising Costs

CJ Cheiljedang Corp., a leading South Korean food company, announced a staggering 48.3 percent drop in its net profit for the third quarter of 2023. The company attributed this decline to rising operating costs and lower earnings from its affiliate, CJ Logistics.

In the three months ending September, CJ Cheiljedang's net profit fell to 61.6 billion won ($45.8 million), down from 119.19 billion won during the same period last year. The company highlighted that increased raw material and logistics costs significantly impacted its quarterly performance.

Additionally, CJ Logistics, in which CJ Cheiljedang holds a 40.16 percent stake, reported a 25.5 percent decrease in its own net profit, further straining the parent company's earnings. Operating profit for CJ Cheiljedang also saw a decline of 10.8 percent, amounting to 309 billion won compared to 346.5 billion won a year earlier.

Sales experienced a slight decrease of 0.6 percent, totaling 7.39 trillion won, down from 7.44 trillion won in the previous year. Over the first nine months of 2023, the company's net profit plummeted by 53.5 percent, indicating ongoing challenges in the food sector.

Looking ahead, CJ Cheiljedang plans to enhance its food business operations and improve profitability in its nucleic acid and feed-grade amino acid sectors. The company currently operates 34 production facilities globally, with plans for expansion in Hungary and South Dakota.