CJ Cheiljedang (097950) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating profit increased 14% year-over-year, driven by high-margin bio products, margin improvement in Feed & Care, and robust overseas food growth, especially in the US and Europe, despite a 1% sales decline in food and weak domestic demand.

• Net profit reached KRW 110.5 billion (excluding logistics), up 59.5% year-over-year, supported by operating profit gains.

• Maintains strong credit ratings (AA for bonds, A1 for commercial paper) and a global network with 221 subsidiaries as of June 2024.

Financial highlights

• Q2 2024 sales (excluding logistics) were KRW 4.3314 trillion, operating profit KRW 269 billion, and net profit KRW 110.5 billion.

• Including logistics, Q2 sales rose 0.3% year-over-year to KRW 7.2386 trillion, operating profit increased 11.3% to KRW 383.6 billion, and net profit reached KRW 147.8 billion.

• H1 2024 consolidated revenue was ₩14.45 trillion, operating profit ₩759.5 billion, and net profit attributable to controlling interests ₩190.0 billion.

Segment performance

• Food: Q2 sales down 1% year-over-year; processed food in Korea up 3%, but overall operating profit dropped 5% to KRW 135.9 billion; H1 sales ₩5.54 trillion, operating profit ₩320.4 billion.

• BIO: Q2 sales up 1% year-over-year, operating profit up 17% to KRW 99 billion, with specialty products now 22% of sales; H1 sales ₩2.08 trillion, operating profit ₩196.8 billion.

• Feed & Care: Q2 sales down 12% year-over-year to KRW 569.9 billion, but operating profit rebounded to KRW 34.1 billion; H1 sales ₩1.16 trillion, operating profit ₩18.8 billion.

• Logistics: Q2 sales up 3% year-over-year to KRW 3.0592 trillion, operating profit up 12% to KRW 125.4 billion; H1 sales ₩5.68 trillion, operating profit ₩223.5 billion.