[Edaily Reporter kim mi-kyung ] CJ CheilJedang Corp. is accelerating its restructuring efforts, building on the growth momentum of global K-food. Following last year, when overseas food sales accounted for more than half of total revenue for the first time, the company saw both revenue and operating profit increase in the third quarter of this year, driven by strong sales of flagship products such as dumplings and Haetban, as well as solid performance in its high-value-added ingredients business. Observers note that the restructuring—which has involved boldly divesting non-core businesses to focus on core competencies—is gradually yielding results.

CJ CheilJedang Corp(097950)On the 10th, the company announced that its third-quarter revenue for this year, excluding CJ LOGISTICS, reached 4.23 trillion won, a 5.7% increase year-over-year. Operating profit for the same period rose 6.9% to 203 billion won.

A key highlight of these results is the growth in the overseas food business and the core materials business. Overseas food sales, driven by Global Strategic Products (GSPs) such as dumplings and Haetban, rose 3.7% to 1.5093 trillion won. In particular, the company recorded double-digit growth rates of 26% in Europe and 14% in Vietnam. The core materials business also posted an operating profit of 108.5 billion won, up 36%, driven by expanded lysine sales in North America and growth in high-value-added amino acids.

However, the increase in sales did not immediately translate into improved profitability. In the food business, operating profit remained at the previous year’s level of 118.7 billion won due to the burden of raw material and logistics costs. The technology materials business also saw sales rise by 20.2%, but posted an operating loss of 24.2 billion won due to investments in future growth businesses and strategic pricing of nucleic acid products. This leaves the company with the challenge of narrowing the gap between revenue growth and profit improvement.

This is why CJ CheilJedang Corp. is focusing its efforts on its overseas food business. The company has determined that, with the domestic food market entering a mature phase, expanding into overseas markets is essential for sustained growth. In fact, the share of overseas food sales rose from 47.0% in 2022 to 49.2% in 2024, and last year it reached 51.4%, surpassing domestic sales for the first time. In the third quarter of this year, 58.6% of total food business revenue was generated overseas.

The focus of the overseas strategy is also on expanding overseas production and distribution infrastructure. In Japan, the company is expanding its local operations through a dumpling factory completed last September with an investment of approximately 100 billion won. “Bibigo Mandu Gyoza,” launched after the factory began operations, is now supplied to over 6,000 major retail outlets. In March of this year, Bibigo Mandu recorded a 10% market share in Japan for the first time. In the U.S., the company is strengthening its supply competitiveness by adding a new production facility in South Dakota to the distribution network secured through the acquisition of Schwan’s. In Europe, it is also pushing to expand its sales network based on its production hub in Hungary. The strategy is to establish flagship products—such as dumplings and Haetban—as everyday staples that local consumers purchase repeatedly.

In South Korea, the company is seeking a growth breakthrough by shifting to an online-centric sales structure. The plan is to reduce dependence on existing large-scale retail channels and increase distribution efficiency by expanding consumer touchpoints such as online platforms and convenience stores. In the same vein, the company is fostering new product categories—such as Bibigo Grilled Fish and Baekseol 1-Minute Rings—in addition to existing flagship products like Haetban and Sobaba.

Another pillar for securing profitability is the restructuring of the business portfolio. Following the completion of the sale of CJ Feed & Care, which handled the feed and livestock business, earlier this year, CJ CheilJedang Corp is now proceeding with the sale of its starch division. The aim is to concentrate the funds secured from divesting non-core businesses on high-growth areas such as global food and high-value-added materials.

These moves align with the aggressive restructuring strategy of Yoon Seok-hwan, CEO of CJ CheilJedang Corp., who took office last October. In March of this year, CEO Yoon stated, “There is no such thing as a ‘suitable tomorrow’ for us. If we don’t change now, we will have no other options,” calling for a fundamental overhaul. Since then, the company has reorganized its business structure—previously centered on food and biotechnology—into three segments: lifestyle foods, technology materials, and core materials, and is realigning its competitiveness with a focus on profitability by business unit.

The key lies in tangible results. The sale of the starch business unit is facing setbacks, such as schedule delays, and the burden of fines resulting from antitrust sanctions remains a variable. In particular, reducing losses in the technology materials business and restoring profitability in nucleic acids and amino acids for animal feed are identified as key challenges.

An official in the food industry stated, “CJ CheilJedang Corp has secured a foundation for overseas growth by focusing on everyday foods such as dumplings and Hapban, but now it has become crucial to move beyond mere expansion and focus on how much profitability can be boosted.” The official added, “The challenge is to demonstrate the company’s ability to generate tangible profits by increasing the utilization rates of overseas production bases, divesting non-core businesses, and improving the profitability of the bio business.”