CJ Cheiljedang (097950) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales excluding logistics rose 4.3% year-on-year to KRW 4.0271 trillion, driven by global GSP sales, new product launches in Korea, and BIO health/nutrition growth.

• Operating profit declined to KRW 148.5 billion (down KRW 52.2 billion year-on-year), mainly due to lower BIO selling prices and increased promotional spending.

• Net income surged to KRW 89.7 billion, up KRW 71.1 billion year-on-year, aided by gains from raw material derivatives and FX.

• Including logistics, sales grew 6% year-on-year to KRW 7.1111 trillion; operating profit dropped 17.2% to KRW 238.1 billion.

Financial highlights

• Food business sales up 3.9% year-on-year to KRW 3.0384 trillion; operating profit up KRW 14.4 billion to KRW 143 billion.

• Global/overseas food sales up 4.5% year-on-year, led by Mandu and processed rice; Europe and APAC regions saw double-digit growth.

• Processed food sales in Korea rose 9% year-on-year; FI sales declined 7% due to weaker soybean meal market.

• BIO sales up 5.7% year-on-year to KRW 988.7 billion; operating profit dropped sharply year-on-year due to margin pressure.

• CJ Logistics sales up 7.4% year-on-year to KRW 3.2145 trillion; operating profit up KRW 6.7 billion to KRW 92.1 billion.

Outlook and guidance

• Q2 2026 consolidated sales expected to grow at a mid-single digit rate year-on-year; operating margin projected around 4%.

• Global food business to sustain growth via GSP product expansion, new product launches, and digital marketing, leveraging Asian cuisine trends.

• BIO business expects sales and profitability improvement in Q2, driven by specialty products and cost structure advantages.

• Anticipated benefit in methionine from competitor disruptions and ability to pass on higher raw material costs.