• Total Sales (Excluding CJ Logistics): KRW 4.62 trillion.

• Operating Profit (Excluding CJ Logistics): KRW 276.4 billion.

• Net Profit: KRW 141.6 billion.

• Total Sales (Including CJ Logistics): KRW 7.414 trillion, 0.4% lower year-on-year.

• Operating Profit (Including CJ Logistics): KRW 416.2 billion, 5.1% higher year-on-year.

• Food Business Unit Sales: Decreased by 1% year-on-year.

• Food Business Unit Operating Profit: KRW 161.3 billion, decreased by 31% year-on-year.

• Food Global Sales: KRW 1.403 trillion, grew by 5% year-on-year.

• Global Sales Growth (GSB): 14% growth in categories like dumpling, roll, frozen rice, sauce, and seasoning.

• BIO Business Unit Sales: Increased by 1% year-on-year.

• BIO Business Unit Operating Profit: KRW 84.2 billion, grew by 75% year-on-year.

• Feed and Care Sales: KRW 578.9 billion, decreased by 5% year-on-year.

• Feed and Care Operating Profit: KRW 32.7 billion, turned positive year-on-year.

• CJ Logistics Sales: Increased by 1% year-on-year.

• CJ Logistics Operating Profit: KRW 141.6 billion, increased by 14% year-on-year.

• SG&A Increase: Wages and advertising increased by KRW 15.3 billion and KRW 10.1 billion respectively.

• Non-Operating Balance: Negative KRW 93.5 billion, fell by KRW 49.1 billion year-on-year.

• Warning! GuruFocus has detected 3 Warning Signs with XKRX:097950.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CJ CheilJedang Corp (XKRX:097950) reported a slight growth in operating profit (OP) for Q3 2024, driven by strong performance in the global food, BIO, and Feed & Care (F&C) segments.

• The company's global food business saw solid growth, particularly in the US and Europe, with core products like dumplings, pizza, and rolls showing strong sales.

• BIO segment achieved a 75% year-on-year increase in OP, supported by high-margin products such as tryptophan and arginine.

• CJ Logistics, a subsidiary, reported a 14% year-on-year increase in OP, demonstrating effective cost management and productivity improvements.

• The company is actively expanding its sustainability efforts, enhancing ESG management, and increasing the scope of its sustainability report to include more subsidiaries.

Negative Points

• Sales in the Food Korea segment fell by 1% year-on-year, impacted by sluggish offline retail demand and economic slowdown in key markets like Korea, China, and Japan.

• Net profits declined due to a negative non-operating balance, recording KRW 141.6 billion, which affected overall financial performance.

• The US food business faced challenges with declining OP margins due to intensified competition and increased raw material costs.

• The company's sugar and cooking oil businesses struggled due to low sugar trends and strategic focus on profitability over sales volume.

• The global food market's organic growth appeared weaker than expected, with challenges in the China and Japan regions impacting overall sales performance.