1. CJ CheilJedang Q1 Earnings: What Happened?

CJ CheilJedang’s Q1 2025 earnings presented a mixed bag. Net profit exceeded market forecasts, but revenue and operating profit missed the mark. While the global growth of the ‘Bibigo’ brand and a strong logistics performance contributed positively, cost pressures and increased SG&A expenses weighed down the results.

  • Revenue: KRW 72.37 trillion (similar YoY, -1.07% vs. consensus)
  • Operating Profit: KRW 3.53 trillion (-2.51% vs. consensus)
  • Net Profit: KRW 1.63 trillion (+16.00% vs. consensus)

2. Key Business Segment Analysis: Why These Results?

The Food division maintained solid growth, driven by the global recognition of the ‘Bibigo’ brand and the ongoing K-Food trend. The Logistics division also performed well, thanks to the expansion of the e-commerce market and strengthened last-mile delivery services. However, the BIO division faced challenges due to increased competition and cost pressures.

3. Key Takeaways for Investors: What Now?

Investors should pay attention to the following:

  • Cost Management: Continuous monitoring of raw material prices and exchange rate volatility is crucial.
  • Financial Health: Managing the increasing trend of short-term debt is essential.
  • Future Growth Drivers: Keep an eye on new investments and the performance of new businesses in the BIO division.

4. Investment Action Plan: Your Choice?

CJ CheilJedang boasts a robust business portfolio, but short-term uncertainties exist. A prudent approach is to consider the company’s efforts to strengthen its competitiveness and its ESG performance from a long-term perspective. Carefully analyze macroeconomic conditions and changes in the competitive landscape, and make investment decisions based on your investment objectives and risk tolerance.