CJ Cheiljedang (097950) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales excluding logistics rose 10.2% year-over-year to KRW 4.195 trillion, driven by global food and BIO business growth.

• Operating profit fell to KRW 161.9 billion, with margin at 3.9%, due to higher costs, unfavorable currency effects, and a high base in BIO.

• Net income dropped to KRW -23.9 billion, impacted by increased non-operating expenses from FX and derivative losses.

• Including logistics, revenue grew 9.5% YOY to KRW 7.3621 trillion, but OP declined 18.5% to KRW 257.6 billion.

• Operates in Foods, BIO, and Logistics segments globally, with 187 consolidated subsidiaries as of June 2026.

Financial highlights

• H1 2026 consolidated revenue: KRW 14.47 trillion, up 7.8% year-over-year; operating income: KRW 495.7 billion, down 17.9% year-over-year.

• Food business sales up 5.8% YOY to KRW 2.8441 trillion; global food sales up 10.1% YOY, Korea up 1.4%.

• BIO sales up 20.8% YOY to KRW 1.3509 trillion; operating profit down YOY but up sequentially.

• CJ Logistics sales up 10.9% YOY to KRW 3.38 trillion; OP down due to strategic investments and one-off costs.

• Net income attributable to owners: KRW 68.3 billion for H1 2026, down 61.2% year-over-year.

Outlook and guidance

• Q3 2026 consolidated sales expected to grow low double digits YOY; operating margin projected in mid to high 4% range.

• Global food to see continued sales expansion, especially in North America and APAC, but cost inflation pressures to persist.

• BIO business profitability to recover YOY but may decline sequentially due to higher oil prices.

• Focus on premiumization, global expansion, and innovation in Foods and BIO.