4 February 2010 - Cheil Jedang (CJ) has announced that its net profit in Q4 2009 jumped 953.9% from KRW 25.4 billion to KRW 267.7 billion (about USD 230 million). Overall sales for the company also increased, by 9.8% to KRW 3,838,7 billion.
Sales :3,838.7 bn won(343.8 bn Won ↑YoY)
Foodstuffs sector increased by 17.4% (234.5 bn won)
• Commission sales of Shindongbang CP and Samyang Oil
• ASP increase due to grain price hike and weak KRW
•Constant market expansion of High Value-added products← pre-mix products’ market expansion, robust sales of oligosaccharide products,demand increase of ‘Trans Fat Free Oil’
Non-chilled food sector increased by 1.4% (9.7 bn won)
• Slight sales increase of traditional pastes due to good B2C sales (Maintaining strong market position with stable MS of hot pepper paste 49%, soybean paste 47% and mixed paste 46% (Dec.’09))
•Sales increase of convenience products on the back of new products such as retort
•Condiments (‘Dashida’) sales decreased in the 1sthalf due to the economicregression but recovered in the 2ndhalf with the economic recovery
• Sales decrease of health food due to economic regression
Chilled food sector increased by 16.8% (99.0 bn won)
• Continuous high sales growth of soy products (tofu/bean sprouts) (24.8%↑/ 22.9%↑ YoY)
•17.8% sales increase of processed meat from robust sales of eggs and ‘beksul’ and ‘freshian’ ham sales increase
•Strengthening market position in frozen products with strong sales of newly-launched dumpling products and frozen readymeals (Frozen dumpling M/S 08YE 25% -> 09YE 31%)
Gross Profit 1,131.6 bn Won (22.4 bn Won ↑YoY)
Foodstuffs sector 21.5% (0.2%pt ↑ YoY)
•Slight increase of GP margin due to the lower price of some grains (wheat & soybean) despite the Won appreciation
Non-chilled food sector 42.8% (3.0%pt↓YoY)
•Margin decrease of ‘Dashida’ due to Won appreciation and price hike of raw materials such as MSG, nucleotides and beef mix
•Convenience food margin decrease due to competition cost increase
•Health food margin decrease due to sales decrease
CJ's quarterly profit report comes on the heels of the company's announcement to build a second production plant for nucleotides in Liaocheng, China, as reported by FLEXNEWS.