SEOUL– CJ Cheiljedang Corp., South Korea’s leading food manufacturer, said Monday that its net profit increased 11.7 percent in the third quarter from a year earlier thanks to brisk demand at home and abroad for its processed food.

Net income came to 211.2 billion won (US$178.5 million) on a consolidated basis in the July-September period, up from 189.2 billion won a year earlier, according to a corporate regulatory filing.

Its operating profit increased 7.7 percent on-year to 433.2 billion won, and sales grew 8.1 percent on-year to 6.85 trillion won over the period.
The earnings hike came despite increased costs of grains and transport.

CJ Cheiljedang attributed the earnings hike to the popularity of its heat-and-eat products, or home meal replacements, amid the country’s social distancing scheme against the new coronavirus.

Sales growth of Korean dumplings and fruit vinegar drinks in overseas markets, including the United States, China and Japan, also added to the company’s profit, the firm said.

The company’s overall food sales increased 7.9 percent on-year to 2.58 trillion won in the third quarter, and sales rose 5.8 percent to 186 billion won. Overseas food sales hiked 10.3 percent to 1.13 trillion won.

Demand for processed food steeply increased amid the pandemic, up 33 percent online and 15 percent in convenience stores.

Bio-related sales jumped 35.4 percent to 1.04 billion won, and operating profit shot up 60.9 percent to 127.4 percent.

Shares in CJ Cheiljedang fell 1.31 percent at 376,500 won on Monday on the Seoul bourse, underperforming the broader KOSPI’s 0.31 percent decline. The earnings report was released after the market closed.

Source: Yonhap News Agency