South Korean food giant CJ Cheiljedang Corp. said Monday its second-quarter net profit plunged almost 50 percent from a year earlier due to a global economic slowdown and higher cost burden.
Net profit for the three months ended in June was 127.5 billion won (US$97.6 million), down 49.6 percent from the same period last year, the company said in a regulatory filing.
The operating income for the April-June period fell 31.7 percent on-year to 344.6 billion won, and revenue decreased 4 percent to 7.22 trillion won.
CJ Cheiljedang's flagship food business saw its sales grow 5 percent to 2.73 trillion won in the second quarter from a year ago but saw its operating profit fall 15 percent to 142.7 billion won.
The company raised 1.42 trillion won in sales domestically, up 2 percent from a year earlier, and 1.31 trillion won overseas, up 8 percent.
In overseas markets, global strategic products, including frozen dumplings, fried chicken, processed rice, Korean-style sauce and kimchi, led the increase in sales, a company official said.
The official added that its sales rose 13 percent in the United States thanks to the popularity of its frozen dumpling and pizza products.
Sales in the Asia-Pacific and European regions retreated 9 percent, mainly due to the slowdown of China and Japan's economies.
The bio business, however, logged a 20 percent loss in sales and a 76 percent loss in operating profit in the second quarter from a year ago, and the food and nutrition technology business posted a 26 percent loss in sales and a 17 percent loss in operating profit.
Sales of CJ Cheiljedang's feed and care business also fell 3 percent on-year, while its operating profit jumped 159 percent on-year.
Source: Yonhap News Agency