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 Food, and BIO health/nutrition growth.

• Operating profit fell 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 foreign exchange.

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

• Q1 2026 saw the divestiture of Feed & Care (F&C) subsidiaries, impacting segment reporting.

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 food sales rose 4.5% year-on-year, with strong growth in Europe (17%) and APAC (17%), and 3% growth in the U.S.

• BIO sales increased 5.7% year-on-year to KRW 988.7 billion; operating profit decreased by KRW 66.6 billion year-on-year but improved quarter-on-quarter.

• 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.

• Basic EPS (common stock): ₩5,107, up from ₩850 in Q1 2025.

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.

• BIO business expects sales and profitability improvement in Q2, driven by specialty products and recovery in feed amino acids.

• Focus on premiumization and global expansion in Food, innovation in Bio, and automation in Logistics.

• Continued investment in R&D and digital transformation to drive future growth.