CJ Cheiljedang announced that its sales and operating profit recorded 24.25 trillion won and 1.36 trillion won in 2020 respectively, up by 8.5% and 51.6% year-on-year (consolidated basis).
Excluding CJ Logistics figures, its sales and operating profit stood at 14.17 trillion won and 1.42 trillion won respectively, up by 10.9% and 73%. This is the first time that CJ Cheiljedang has exceeded 1 trillion won in its annual operating profit. It is the result of preemptive innovation in the company’s business structure, which has ultimately improved profitability. In particular, global business has grown rapidly as seen in its overseas sales accounting by more than 60%.
▶ According to CJ Cheiljedang’s 2020 earnings report, its sales and operating profit reached 24.25 trillion won and 1.36 trillion won respectively, up by 8.5% and 51.6% year-on-year.
Accelerated growth of global businesses, including its bio business and Schwan's Company in the US... Significant improvement in profitability by preemptively innovating its business structure
Food Business raised 8.97 trillion won in sales, up by 12% from the previous year. This was mainly driven by the significant increase in overseas sales, while domestic sales remained similar to the previous year. Overseas
sales, including Schwan's Company (2.83 trillion won) reached 4.13 trillion won, accounting for 46%. This achievement was made as K-food products led by Bibigo instant dumplings have solidified their presence in mainstream markets, including in the US. In particular, the company’s intensive efforts to improve profitability have led to stronger performance, which greatly contributed to increasing its operating profit by 49.1% to 511 billion won. The operating profit of Schwan’s (if PPA is not considered) increased by about 65%. Bio Business largely led by amino acids and seasoning materials raised 2.98 trillion won in sales and 312.2 billion won in operating profit, up by 7.9% and 34.2% respectively year-on-year. This is noteworthy in that its operating profit margin has recorded a double-digit figure (10.5%) for the first time in 8 years since 2012, demonstrating the significant increase in profitability. Increased sales of high-margin products, such as tryptophan/valine/arginine and the diversification of its portfolio based on the world-class R&D competitiveness were the main reasons for the significant increase in operating profit.
CJ Feed & Care (feed and livestock) recorded sales of 2.21 trillion won, up by 11% from the previous year mainly due to increased demand in China and Vietnam and rising pork prices. Its operating profit has also increased significantly to 219.3 billion won thanks to the favorable market conditions in Vietnam.
CJ Cheiljedang began its preemptive strategy in the second half of 2019 by improving profitability as well as financial structure. Based on such efforts, the company has created new opportunities for its global businesses even amid the increasing uncertainty caused by the COVID-19 pandemic, not only achieving external growth, but also strengthening its fundamentals. As the demand for home meal replacements (HMRs) still persists at home and abroad, CJ Cheiljedang is expected to continue its growth this year.
A representative from CJ Cheiljedang said, "We will emerge as a 'global top company' based on the continuous development of new products for the future, strategic R&D investment, and the establishment of structural competitiveness while focusing our capacity on core products and businesses.”