CJ Cheiljedang (097950) Q4 2024 earnings summary

Executive summary

• Q4 operating profit rose 39% year-over-year, driven by BIO profit growth and Feed & Care turnaround.

• Overseas food sales hit a record, up 7% year-over-year, with strong growth in Europe and Japan; online food sales in Korea rose 26% year-over-year, offsetting offline weakness.

• Net profit was negative in Q4 due to significant non-operating losses, mainly from asset impairments.

Financial highlights

• Q4 sales (excluding logistics) grew 2% year-over-year to KRW 4.475 trillion; operating profit up 39% to KRW 219.9 billion; net loss was KRW 261.9 billion due to non-operating losses.

• Full-year 2024 sales (including logistics) up 1.2% to KRW 29.3591 trillion; operating profit up 20% to KRW 1.553 trillion.

• Gross margin improved to 27.7% in Q4 from 25.6% a year earlier.

• SG&A to sales ratio increased by 90 bps; non-operating loss of KRW 430.5 billion, mainly from asset impairments.

Outlook and guidance

• 2025 sales growth expected in low single digits, with operating profit margin around 6%.

• Food expects sluggish H1 but H2 recovery via core product expansion and online shift; overseas growth to continue.

• BIO to benefit from strategic pricing and global competitiveness in amino acids, with full recovery in major markets anticipated.

• Feed & Care profit structure to improve, supported by stable livestock prices and enhanced cost structure.

• New dividend policy: payout ratio set at 25%+ of net income (excluding non-recurring items); 2024 dividend per share KRW 6,001, up KRW 501 year-over-year.