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(LEAD) CJ Cheiljedang-Q4 earnings
(LEAD) CJ Cheiljedang's Q4 net down 62 pct on increased expenses, grain prices
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SEOUL, Feb. 13 (Yonhap) -- CJ Cheiljedang Corp. said Monday its net profit declined 62 percent in the fourth quarter from a year earlier on increased expenses and worsened profitability of its feed and livestock business.
CJ Cheiljedang's net income came to 76.3 billion won (US$59.7 million) on a consolidated basis in the October-December period, compared with 200.9 billion won during the same period of 2021, the company said in a regulatory filing.
Operating profit rose 1.7 percent on-year to 240.6 billion won. Sales increased 9 percent to 7.57 trillion won.
The food company blamed such a drop in its net income to seasonal factors, a rise in non-operating expenses, such as corporate tax, transportation fees and advertisement expenses, as well as worsened profitability of its livestock and feed affiliate, CJ Feed & Care.
"Our livestock and feed business suffered, as livestock prices rose from a rise in grain prices, while Southeast Asian consumers reduce spending on meat," a company official said.
In the fourth quarter, CJ Feed & Care logged an operating loss of 32.2 billion won. Its operating profit plunged 94.9 percent last year.
"Payroll costs, such as incentives, and increased non-operating costs affected our net income, too," the company official said.
For the whole of 2022, the company's net income declined 10.1 percent to 802.7 billion won. Operating profit for the year came to 1.66 trillion won, up 9.2 percent. Sales rose 14.4 percent on-year to 30.07 trillion won.
Top-line figures of the company's food business grew by double digits last year, with its yearly sales surpassing the 10 trillion-won mark for the first time, it said.
Its global business was strong, with sales reaching over five trillion won and operating profit rising 45 percent from the previous year. The company's key food products, including dumplings, chicken and instant rice, saw sales increase by 56 percent.
CJ Cheiljedang plans to focus on improving the profitability of its food business, while expanding its presence in the global markets. The company will also focus on nurturing new business areas, such as vegan foods and alternative proteins, it said.
"We will continue innovative growth by developing new high-value products and securing competitiveness through investment in research and development," the company said.
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