Seoul: South Korean food company CJ Cheiljedang Corp. announced that its fourth-quarter net loss widened significantly compared to the previous year, mainly due to non-operating losses associated with asset valuations.

According to Yonhap News Agency, the company reported a net loss of 798.7 billion won (US$547 million) for the three months ending in December, a substantial increase from the 152.8 billion won loss recorded during the same period in 2024. A company spokesperson attributed the disappointing performance to weaker domestic food sales amid a prolonged market slowdown and rising raw material costs. Additionally, declining sales in the biotechnology sector, particularly in livestock feed amino acids, further impacted the company's results.

The company did not specify the exact amount of losses related to the revaluation of tangible and intangible assets in the fourth quarter. Operating profit for the quarter fell 21.6 percent to 295.9 billion won, down from 377.3 billion won, while sales decreased 6.5 percent to 7 trillion won from 7.49 trillion won.

Looking forward, CJ Cheiljedang intends to pursue growth in new overseas markets and restructure its biotechnology operations. For the entire year of 2025, the company reported a net loss of 416.9 billion won, a stark contrast to the net profit of 361.8 billion won achieved the previous year. Full-year operating profit dropped 20.6 percent to 1.23 trillion won from 1.55 trillion won, with sales declining 6.9 percent to 27.3 trillion won from 29.3 trillion won.

CJ Cheiljedang operates 34 production facilities internationally, including 20 in the United States, five in Japan, four in China, three in Vietnam, and one each in Germany and Australia. In South Korea, the company runs 17 plants. It is also in the process of constructing two additional facilities, one in Hungary and another in South Dakota, USA.