CJ Cheiljedang (097950) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue declined 1.9% year-over-year to KRW 4.5326 trillion (excluding logistics), as food growth was offset by declines in bio and feed & care segments.

• Operating profit dropped 25.6% year-over-year to KRW 202.6 billion, mainly due to unfavorable bio and F&C market conditions despite improved food profitability.

• Net profit fell 66.4% year-over-year to KRW 46.1 billion, impacted by reduced foreign exchange gains and lower non-operating profit.

• Including logistics, total sales rose 0.3% year-over-year to KRW 7.4395 trillion, but operating profit decreased 15.9% to KRW 346.5 billion and net profit dropped 42.7% to KRW 119 billion.

Financial highlights

• Gross margin decreased to 27.1% from 28.4% year-over-year, reflecting higher cost of goods sold.

• EBITDA margin declined to 8.6% from 11.0% year-over-year.

• Net profit margin fell to 1.0% from 3.0% year-over-year.

• Liability to equity ratio at 137% (excluding logistics), up from 134% at year-end 2024.

• Net debt to equity ratio at 75% (excluding logistics), up from 71% at year-end 2024.

Segment performance

• Food business sales were KRW 2.984 trillion (flat year-over-year), with global sales up 4% and Korea down 3% due to weak gift set sales; operating profit rose 4% to KRW 168.5–169 billion, aided by cost optimization and overseas growth.

• Bio sales declined 8% year-over-year to KRW 979.4 billion; operating profit plunged 72% to KRW 22 billion due to price drops in high-margin amino acids and intensified competition.

• Feed & care sales fell 2% year-over-year to KRW 569.2 billion; operating profit dropped 63% to KRW 12 billion, with Vietnam livestock prices weak from abnormal weather.

• Logistics sales grew 3% year-over-year to KRW 3.0666 trillion; operating profit increased 4% to KRW 147.9–148 billion, driven by parcel and contract logistics growth.