Q2 2024 CJ CheilJedang Corp Earnings Call Transcript
Key Points
- CJ CheilJedang Corp (XKRX:097950) reported a 14% growth in operating profit (OP) in Q2 2024 in South Korea.
- The company's US operations solidified their number one market position with strong growth in products like Mondeo and pizza.
- High-margin products in the bio segment, such as trip defense and specialty amino acids, saw increased sales and improved margins.
- CJ Logistics, a subsidiary, reported a 3% year-over-year increase in sales and a 12% increase in OP.
- The company is actively expanding its market presence in Europe and Oceania, with significant growth in these regions.
- Sales in the food segment decreased by 1% year-over-year, impacted by a slowdown in the US, China, and Japan.
- Operating profit in the food segment dropped by 5% year-over-year due to reduced consumer spending in Korea and a challenging divestiture.
- Feed and care sales declined by 12% year-over-year, affected by market contraction and profit-focused operations.
- SG&A expenses increased, with transportation costs rising by KRW12.1 billion, impacting overall profitability.
- The company anticipates a continued consumption slowdown in Korea, which could affect future sales and profitability.
Ladies and gentlemen, I am Jun Seong, Head of IR team at Corporate Finance will now begin the Q2 2024 business results report of CJ CheilJedang. Today's session will be interpreted simultaneously into English for foreign investors.
Let me first introduce the CJ team. We have Mr. Kyoung Suk Kang, Head of Corporate Finance; Mr. Geun-yeong Jung, Head of Food, Korea Business Planning; Mr. Jae-beom Cho, Head of Business Management; Mr. Jang Young Kim, Head of Bio Business Management; and Mr. [Hwang Hyeon-ju], Head of Feed and Care Business Planning; Mr. Kang will first walk you through the business results, followed by progress on key strategy, execution and outlook by respective presenters. We'll then move on to Q&A.
Ladies and gentlemen, I am Kyoung Suk Kang, Head of Corporate Finance, CJ CheilJedang.
Today's agenda includes the Q2 highlights, earnings analysis by business unit, key
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