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(Photo= Korea Investment & Securities) |
[Alpha Biz= Reporter Kim Sangjin] On the 4th, Korea Investment & Securities projected that CJ CheilJedang's domestic food business will struggle in the third quarter, while its overseas operations are expected to continue growing.
Korea Investment & Securities estimated that CJ CheilJedang’s revenue, excluding CJ Logistics, will reach 4.6647 trillion won, with an operating profit of 308.1 billion won for Q3. Although this marks an 11.9% increase in operating profit compared to the same period last year, revenue is expected to decrease by 0.2%.
The firm noted, "Despite improved manufacturing costs due to falling grain prices, demand for processed foods has weakened, intensifying competition for some items and increasing promotional expenses, which will lead to a slight decline in profitability for the food division compared to last year."
Conversely, Korea Investment & Securities stated, "Unlike the sluggish domestic food business, the overseas food sector is likely to have continued its growth in Q3," adding that "the strategy of increasing market share based on price competitiveness in the U.S. processed food market will remain effective."
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
