CJ Cheiljedang Q1 net plunges 62.9% on weak domestic demand
South Korean food company CJ Cheiljedang Corp. said Tuesday its first-quarter net profit plunged 62.9 percent from a year earlier due to weak domestic demand.
Net profit for the three months ended March fell to 57.4 billion won ($40.5 million), down from 154.6 billion won in the same period last year, the company said in a regulatory filing.
"A prolonged slump in the domestic food market and relatively lower sales of high-end amino acid for livestock compared with the first quarter of last year ate into the quarterly bottom line," a company spokesperson said.
Livestock feed affiliate CJ Feed&Care, wholly owned by CJ Cheiljedang, focuses on businesses in Southeast Asia.
CJ Cheiljedang plans to launch more localized dumpling products under CJ's Bibigo brand, along with other food items, in global markets. It also aims to further promote amino acid and savory ingredients to boost sales.
Operating profit dropped 11.4 percent to 333.2 billion won in the first quarter, compared with 375.9 billion won a year ago.
Sales edged down 0.1 percent to 7.2 trillion won from 7.21 trillion won over the same period.
CJ Cheiljedang has operations in the United States, Britain, France, Australia, Japan, China and Thailand, among other countries. (Yonhap)
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