CJ CheilJedang posted 18.7 trillion won in sales in 2022, up 19.3 percent year-on-year, and 1.2 trillion in operating profit, up 7.6 percent year-on-year on the back of the continuous rise of its global businesses, such as “K-food” and biotech. The figures excluded CJ Logistics.
CJ CheilJedang also announced the consolidated statement of operations, including CJ Logistics, through public disclosure on Feb. 13.
It recorded revenue of 30.7 trillion won, up 14.4 percent year-on-year and an operating profit of 1.6 trillion won, up 9.2 percent year-on-year.
CJ CheilJedang overcame rising food prices with the rise of Korean cuisine and biotechnology business on the global stage.
The company saw operating profit jump 45 percent, helped by the great performance in the food division, which was led by the rising popularity of K-food. Schwan's Company topped the 3 trillion and 200 billion won mark in annual revenues and operating profit, respectively.
In the food business, CJ CheilJedang recorded 11.1 trillion won in revenue (up 16.1 percent y-o-y) and 623.8 billion won (up 12.5 percent) with impressive performance from K-food products centered around Bibigo.
The food business broke the 10 trillion won mark in annual revenue and 600 billion won mark in operating profit for the first time in company’s history.
Domestic food business saw a slight drop in operating profit, due to high manufacturing costs and other expenses.
The overseas business, however, drove up the overall performance by exceeding 5 trillion won in annual revenue and posting a 45% hike in operating profit.
The share of global sales in food also hit a new high of 47 percent, on the back of the 56 percent growth in revenue of global strategic products (GSP), such as mandu, chicken, and processed rice in major markets including the U.S.
Schwan's Company, in particular, passed 200 billion won in operating profit for the first time, as the company succeeded in reducing fixed costs by improving productivity, streamlining sales promotions, and increasing sales.
By country, CJ CheilJedang has expanded the K-food territory not only in the U.S., where revenue is up about 20 percent, but also in Asia Pacific, Europe, Japan, and China, where the company has begun fully engaging in the local business to strengthen competitiveness.
As for the U.S., mandu revenue from grocery channels increased by 66 percent, pushing up the annual market share to over 40 percent, to maintain the top position.
Revenue for frozen pizza also rose by 29 percent. In Europe and China, K-food has expanded its clout not only in mandu, the flagship product, but also in chicken and kimchi.
Domestic food revenue recorded 5.9 trillion won, up 13.9 percent year-on-year.
CJ CheilJedang has released a series of products that boast high quality on par with that of the food served in restaurants available at a reasonable price.
The company also increased the share of distribution through thriving channels, such as online stores, B2B, and convenience stores.
In addition, CJ CheilJedang has made an effort to cut down costs across all value chains to gear up against inflation and rising production costs.
The biotechnology business led by green biotechnology, including amino acids and seasoning materials posted strong revenue of 4.8 trillion won (up 30.1 percent), breaking the 4 trillion mark won.
Regardless of inflation, the operating profit was 636.7 billion won, up 34.5 percent year-on-year. This is 63.3 billion won higher than that of last year.
Specialty products with high profit margins also experienced growth throughout the year building on the differentiated technical marketing that offers the product and the solution at the same time.
CJ Feed&Care, an independent subsidiary for the feed and livestock business, posted 2.8 trillion won in revenue (up 15.3 percent), while recording 7.7 billion won in operating profit (down 94.9 percent) due to rising grain prices, causing financial strain on the livestock business.
CJ CheilJedang Invests in Australian Bio Startups
CJ CheilJedang is hitting the gas to explore innovation technologies for future growth by investing in foreign bio startups.
CJ CheilJedang said on March 1 the company invested into Provectus Algae, an Australian startup.
Both sides decided to not divulge on the investment amounts.Provectus Algae is an Australian startup specializing in research and production of bio substances based on photosynthetic microalgae.
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