CJ Cheiljedang (097950) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales excluding logistics declined 0.2% year-over-year to KRW 4.3224 trillion, with overseas food and bio growth offsetting domestic food slowdown.

• Operating profit fell 11% year-over-year to KRW 235.1 billion, with a margin of 5.4%, due to weak consumption despite gains in bio and feed & care.

• Net profit rose 40% year-over-year to KRW 149 billion, driven by improved non-operating income and lower interest expenses.

• Including logistics, total sales were flat at KRW 7.2372 trillion, with operating profit down 7% to KRW 353.1 billion.

Financial highlights

• Overseas food and bio sales growth partially offset domestic food weakness.

• Online packaged food sales in Korea increased by 24% year-over-year, despite overall domestic food sales declining 5%.

• Bio business sales grew 2% year-over-year to KRW 1.0798 trillion, with operating profit up 8% to KRW 102.4 billion.

• Feed and care operating profit rose 25% year-over-year to KRW 42.6 billion, despite a 3% sales decline.

• Logistics sales remained flat at KRW 3.0484 trillion, with operating profit down 8% to KRW 115.2 billion.

Outlook and guidance

• Q3 2025 revenue (excluding logistics) projected to see low single-digit year-over-year growth, with an operating profit margin of 5%.

• Overseas food growth expected from normalized U.S. pie production, new pizza launches, and Mandu expansion in Japan.

• Bio profitability improvements anticipated in Q4, with continued benefits from tariffs on Chinese lysine.

• Feed and care to maintain solid profitability despite seasonal livestock price downturns in Vietnam.