1. CJ CheilJedang Q1 2025: A Look Back

CJ CheilJedang’s Q1 2025 results showed year-over-year declines in revenue, operating profit, and net income. This was due to a combination of seasonal factors, the sale of its livestock feed business, rising raw material prices, and exchange rate fluctuations. However, the growth of the BIO division and the premium product strategy offer some positive signs.

2. Q2 2025: Potential for Rebound?

The key question for Q2 is whether CJ can recover from its Q1 slump. The success of its food business’ premiumization and global expansion strategies, along with the continued growth of the BIO division, will be closely watched. Positive results could provide upward momentum for the stock price.

3. Key Variables: Exchange Rates, Commodities, and Interest Rates

  • Exchange Rates: Fluctuations in the KRW/USD and KRW/EUR exchange rates significantly impact CJ CheilJedang, which has a high proportion of exports. Increased volatility could lead to profit erosion.
  • Commodity Prices: Rising grain prices put pressure on the food business. The effectiveness of CJ’s hedging strategy is crucial.
  • Interest Rates: Rising interest rates pose a challenge for CJ CheilJedang, given its high debt-to-equity ratio.

4. Investor Action Plan: Focus on the IR

Investors should pay close attention to the Q2 earnings announcement on August 12th, focusing on management’s outlook and their strategies for addressing the key variables mentioned above. Specifically, look for details on plans to reduce debt and manage risks related to exchange rates and commodity price fluctuations.