Seoul: South Korean food company CJ Cheiljedang Corp. announced a significant 62.9 percent drop in its first-quarter net profit, attributing the decline to weak domestic demand.
According to Yonhap News Agency, the company’s net profit for the three-month period ending in March fell to 57.4 billion won (US$40.5 million), a sharp decrease from 154.6 billion won in the same quarter of the previous year. This downturn was detailed in a regulatory filing by the company.
“A prolonged slump in the domestic food market and relatively lower sales of high-end amino acid for livestock compared with the first quarter of last year ate into the quarterly bottom line,” a company spokesperson explained. CJ Feed and Care, a wholly owned subsidiary focused on Southeast Asian markets, was highlighted in the report.
In response to these challenges, CJ Cheiljedang plans to introduce more localized dumpling products under its Bibigo brand, along with other diverse food items, targeting global markets. The company also aims to enhance its sales of amino acids and savory ingredients.
The report further detailed that CJ Cheiljedang’s operating profit fell by 11.4 percent to 333.2 billion won in the first quarter, down from 375.9 billion won a year earlier. Sales experienced a slight decrease of 0.1 percent, totaling 7.2 trillion won, compared to 7.21 trillion won in the same period last year.
CJ Cheiljedang operates in various international markets, including the United States, Britain, France, Australia, Japan, China, and Thailand, striving to expand its global footprint despite the current domestic challenges.