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 operating profit down 11% to KRW 235.1 billion and a margin of 5.4%.

• 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.

• The group operates four main segments: Foods, Biotechnology (BIO), Feed & Care, and Logistics, with 222 consolidated subsidiaries worldwide.

• The company maintained strong credit ratings (AA for bonds, A1 for commercial paper) and robust liquidity.

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.

• Gross margin (excluding logistics) was 28.8%, and EBITDA margin was 9.5%.

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.

• The company targets stable revenue and profitability through premiumization, global expansion, and cost control.