KOSPIFood & Beverage097950

CJ Cheiljedang

₩179,600▲ 0.90%2026-10-02 close

Market Cap

₩2.7T

Turnover

₩3.9B

Volume

20,000 shares

Shares out.

15.1M

PER

—

PBR

0.4×

EPS

-₩42,404

Dividend Yield

3.27%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩6,000 per share · Prices as of the 2026-10-02 close

Report overview

K-Food Growth Meets Cartel Fines

Overseas food sales overtook domestic sales for the first time, yet antitrust fines and asset write-downs pushed 2025 net income attributable to owners into the red.

1
In 2025 consolidated revenue was KRW 27.34tn and operating profit KRW 1,233.6bn, an operating margin of 4.5%, with a net loss attributable to owners of KRW 571.5bn.
2
The KRW 820.6bn fourth-quarter 2025 net loss attributable to owners reflected a concentration of non-operating items, including fine provisions and impairments at subsidiaries.
3
First-half 2026 operating profit was KRW 238.1bn in Q1 and KRW 257.6bn in Q2 - a sequential recovery, but margins stayed in the 3% range.
4
Overseas food revenue hit a record KRW 5.92tn in 2025, exceeding domestic revenue for the first time (company release, February 2026).
5
After sugar and flour cartel penalties were finalized, a starch-sugar cartel case remains under review, leaving regulatory cost uncertainty.

Business structure

CJ CheilJedang runs food and (green) bio as its core operations while consolidating logistics affiliate CJ Logistics, so consolidated revenue differs greatly from revenue excluding CJ Logistics.

Per the company, 2025 revenue excluding CJ Logistics was KRW 17.75tn, of which the food division accounted for KRW 11.52tn with operating profit of KRW 525.5bn.

Food splits into domestic processed foods (Hetbahn cooked rice, Bibigo dumplings), domestic food ingredients (sugar, flour, cooking oil and other B2B staples), and overseas food centered on Schwan's Company. Schwan's, acquired in 2019, owns US frozen-food brands such as Red Baron and Mrs.

Smith's, and the company designates dumplings, cooked rice, kimchi, seaweed and noodles as Global Strategic Products (GSP) for expansion in the Americas, Europe and Asia-Pacific.

The bio division makes feed amino acids (lysine, tryptophan, arginine) and food seasoning materials (nucleotides, Taste nRich), posted 2024 revenue of KRW 4.21tn and operating profit of KRW 337.6bn, and runs 11 production sites including Fort Dodge, Iowa.

A green-bio divestment process launched in November 2024 was withdrawn via an April 30, 2025 filing stating there was no sale plan, shifting to a grow-the-business stance, and the planned sale of Brazilian unit CJ Selecta was also withdrawn.

The bioresource (livestock/feed) business - CJ Feed&Care and 13 other entities - was sold with closing completed in March 2026, and a Korean credit rating agency estimated this would cut revenue excluding CJ Logistics by more than 10%.

In July 2026 the prior food/bio split was reorganized into three units - Lifestyle Food, Technology Materials and Core Materials - with domestic food ingredients grouped alongside feed amino acids to strengthen joint raw-material purchasing. CJ Corp and related parties held 45.5% of common shares as of end-September 2025.

Earnings trend

Quarterly revenue · Operating profit

₩7.2T₩349.1B25Q2₩7.4T₩346.5B25Q3₩5.5T₩204.8B25Q4₩7.1T₩238.1B26Q1₩7.4T₩257.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩30.1T₩1.7T2022₩29T₩1.3T2023₩29.4T₩1.6T2024₩27.3T₩1.2T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩7.2T	₩349.1B	4.8%
2025Q3	₩7.4T	₩346.5B	4.7%
2025Q4	₩5.5T	₩204.8B	3.8%
2026Q1	₩7.1T	₩238.1B	3.3%
2026Q2	₩7.4T	₩257.6B	3.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩30.1T	₩1.7T	₩802.7B	5.5%	11.9%	160.3%
2023	₩29T	₩1.3T	₩385.9B	4.5%	5.4%	151.3%
2024	₩29.4T	₩1.6T	₩148.2B	5.3%	1.9%	146.3%
2025	₩27.3T	₩1.2T	-₩571.5B	4.5%	−8.1%	157.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Annually, revenue moved from KRW 30.08tn in 2022 to KRW 29.02tn in 2023, KRW 29.36tn in 2024 and KRW 27.34tn in 2025, flattening then declining, while operating profit swung from KRW 1,664.7bn (5.5% margin) in 2022 to KRW 1,291.6bn (4.5%) in 2023, KRW 1,553.0bn (5.3%) in 2024 and KRW 1,233.6bn (4.5%) in 2025.

The swings largely track amino-acid market conditions and domestic food-ingredient pricing, and in 2025 both weakened at once. The decisive gap, however, came below the operating line.

Net income attributable to owners fell from KRW 802.7bn in 2022 to KRW 385.9bn in 2023 and KRW 148.2bn in 2024, then turned to a KRW 571.5bn loss in 2025, which the company attributed to weak bio conditions and non-operating losses from tangible and intangible asset valuation.

Quarterly, operating profit eased from KRW 349.1bn in 2Q25 and KRW 346.5bn in 3Q25 to KRW 204.8bn in 4Q25, and the KRW 820.6bn 4Q25 net loss attributable to owners bundled subsidiary asset impairments, fine provisions and FX-related valuation losses (per the company call).

Into 2026, revenue of KRW 7,111.1bn with operating profit of KRW 238.1bn in Q1 and revenue of KRW 7,362.1bn with operating profit of KRW 257.6bn in Q2 marked sequential profit improvement, yet margins stayed in the 3% range, and Q2 net income attributable to owners was a KRW 13.5bn loss on FX and grain derivative valuation losses.

The company reported 2Q26 revenue excluding CJ Logistics of KRW 4,195.0bn (up 10.2% year on year) and operating profit of KRW 161.9bn (down 18.4%), with margin falling from 5.2% to 3.9%; note those growth rates reflect reclassification of the divested bioresource business as discontinued operations, so they differ from a naive comparison of the reported quarterly revenue series.

Cash generation was steadier: operating cash flow rose from KRW 2,255.3bn in 2024 to KRW 2,481.6bn in 2025, while total liabilities of KRW 18.19tn lifted the debt-to-equity ratio to 157.5% from 146.3% in 2024.

Industry analysis

End-demand diverges sharply between Korea and abroad. The company said 2Q26 overseas food revenue rose 10.1% year on year to KRW 1,507.2bn, with the Americas up 10%, Europe 19%, Asia-Pacific 21% and China 5%, while domestic food grew just 1.4% to KRW 1,336.9bn as processed food rose 3.6% and food ingredients fell 2.4%.

Domestic ingredients faced both price cuts and weak soybean-meal conditions, and the Fair Trade Commission's price re-determination order has structurally tightened the B2B pricing environment.

Bio is inherently cyclical: a credit rating agency noted that after strong amino-acid conditions in 2021-2022, profitability weakened from 2023 on expanded Chinese volumes, with Chinese oversupply intensifying again in 2025.

Conversely, in 2Q26 US and European tariffs on Chinese lysine were reported to have lifted volumes, with Chinese lysine prices up 16% quarter on quarter and European prices up 12%, while high-margin tryptophan saw both price and volume slip on intensifying competition.

On the company's own definition, specialty products reached 18% of bio revenue in 2Q26, continuing the shift away from commodity amino acids.

Competitively, large Chinese green-bio players such as Meihua and Global Bio-chem are direct rivals, while domestic ingredients form an oligopoly with Daehan Flour Mills, Samyang Corp and Sajo Dongaone.

The net picture is simultaneous phases: expansion in overseas K-food, pricing pressure in domestic ingredients, and an early, tariff-dependent recovery in amino acids.

Outlook

The company guided 3Q26 revenue growth excluding CJ Logistics to double digits with an operating margin in the mid-to-high 4% range (August 11, 2026 results release).

Execution priorities include expanding dumpling and cooked-rice sales in the Americas, mainstream store expansion and new launches in Europe, and cost-of-goods and fixed-cost reduction plus a high-margin category focus in Korea.

From the third quarter the three-unit reorganization carried out in July flows into reported results, with the company targeting new-business revenue growth in Technology Materials and second-half improvement in Core Materials by leveraging external conditions.

Having shifted bio from divestment to development, management said it would rebalance toward high-margin specialty products and expand the role of its Fort Dodge, Iowa plant to pre-empt tariff policy.

On the bioresource sale, a credit rating report noted KRW 200bn of proceeds is received in installments over three years after closing with an earn-out adjustment of zero to KRW 350bn, making the timing and size of cash inflows a variable.

Shareholder returns follow a policy of returning at least 25% of separate-basis net income excluding one-offs for fiscal 2024-2026 and lifting quarterly dividends toward 75% of the annual total, and the board approved another quarterly dividend on August 10, 2026.

Share buybacks and cancellations, however, have not been formalized as policy, and with corporate value-up disclosure becoming mandatory for KOSPI-listed firms from 2026, any such announcement is worth monitoring.

On regulation, the starch-sugar cartel case still awaits a final conclusion, so non-operating cost uncertainty persists alongside the company's stated profitability roadmap.

Valuation

PER

—

PBR

0.4×

ROE

-9.1%

EPS

-₩42,404

BPS

₩496,059

Dividend per share

₩6,000

Because the sum of net income attributable to owners over the latest four quarters (3Q25-2Q26) is negative, earnings-based multiples cannot be computed and are not displayed. On an asset basis, the share price sits well below book value per share, and a price-to-book ratio under one has persisted for several years.

Note, however, that of KRW 11,551.2bn in consolidated equity at end-2025, KRW 4,492.6bn was non-controlling interests versus KRW 7,058.6bn attributable to owners, reflecting stakes in subsidiaries such as CJ Logistics - so the owners' equity basis is the more meaningful reference.

On dividends, the notable point is that quarterly payments continued through a consolidated net loss year under a policy of returning at least 25% of separate-basis net income excluding one-offs, meaning the payout is anchored to parent-only rather than consolidated results.

For reference, KB Securities stated in a May 2026 report that it maintained a Buy rating with a target price of KRW 280,000, applying a 12x target multiple to its 2026 EPS estimate.

The crux of the current valuation debate is that earnings-based multiples only become computable again once one-off costs such as fines and impairments are settled and operating margins recover.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Overseas food overtakes domestic

Per the company, 2025 overseas food revenue reached a record KRW 5.92tn, surpassing domestic revenue for the first time. In 2Q26 overseas food rose 10.1% year on year to KRW 1,507.2bn, with non-Americas regions growing faster - Europe up 19% and Asia-Pacific up 21%.

The Global Strategic Product framework spanning dumplings, cooked rice, kimchi, seaweed and noodles, plus Schwan's US distribution, underpins that growth. The core bull argument is that a revenue pillar less exposed to soft domestic demand keeps expanding.

Amino-acid tariffs and specialty mix

In 2Q26 lysine volumes benefited from US and European tariffs on Chinese product, with Chinese lysine prices reported up 16% quarter on quarter and European prices up 12%.

The company cited its status as a global green-bio player with a US plant when withdrawing the divestment, and flagged an expanded role for its Fort Dodge, Iowa facility. Specialty products reached 18% of bio revenue in 2Q26 on the company's definition, continuing the shift away from commodity exposure. The company reported the bio division's operating margin recovering from 0.6% in 1Q26 to 6.7% in 2Q26.

Cash flow and sustained quarterly dividends

Even in loss-making 2025, operating cash flow rose to KRW 2,481.6bn from KRW 2,255.3bn in 2024.

The company maintains a policy of returning at least 25% of separate-basis net income excluding one-offs for fiscal 2024-2026 and lifting quarterly dividends to about 75% of the annual total, and the board approved another quarterly dividend on August 10, 2026.

Proceeds from the bioresource divestment include installments over three years post-closing plus an earn-out, adding a variable to financial flexibility. Operating profit itself stayed above KRW 1tn and positive in 2025.

Bear factors

Structural margin erosion

The operating margin slipped from 5.5% in 2022 to 4.5% in 2025 and stayed in the 3% range in both 1Q26 and 2Q26. The company said its 2Q26 margin excluding CJ Logistics fell to 3.9% from 5.2% a year earlier, citing high oil prices, rising input costs and a weak won.

If revenue can grow at double digits while profit shrinks, the value of top-line expansion weakens. Whether the guided mid-to-high 4% third-quarter margin is delivered is the test for this issue.

A chain of cartel penalties

On May 20, 2026 the Fair Trade Commission fined seven flour millers a combined KRW 671.0bn, of which CJ CheilJedang's share was KRW 131.7bn. Earlier, a sugar cartel case brought KRW 408.3bn across three firms, with CJ CheilJedang's KRW 150.7bn the largest share.

A starch-sugar cartel case involving Daesang, Sajo CPK and Samyang Corp is also under review, with industry participants noting a final conclusion could slip past the third quarter of 2026.

Beyond fines, price re-determination orders and three years of price-change reporting narrow the room to manage domestic B2B pricing.

Leverage and a complex consolidation structure

Total liabilities stood at KRW 18.19tn at end-2025 with a debt-to-equity ratio of 157.5%, up from 146.3% in 2024. Of KRW 11,551.2bn in consolidated equity, KRW 4,492.6bn is non-controlling interests, so consolidated metrics diverge materially from the owners' actual share given the logistics subsidiary in scope.

The structure whereby FX and grain price moves feed directly into net income via derivative and currency valuation was reconfirmed in 4Q25 and 2Q26.

With European and North American capacity investment running alongside dividend expansion, commentary has flagged that capacity for additional returns such as buybacks may be constrained.

Risk factors

Regulatory and legal

After sugar and flour, a starch-sugar cartel case is under Fair Trade Commission review, with some industry observers suggesting it could exceed the record flour fine.

In April 2026 the Seoul Central District Prosecutors' Office indicted three corporate entities including Daesang, Sajo CPK and CJ CheilJedang, plus 22 individuals, for competition law violations. Fines flow through provisions into non-operating expense, an effect already visible in the 4Q25 net loss. Until size and timing are fixed, net income visibility stays low.

Input costs and FX

The company attributed its 2Q26 net loss to FX transaction and derivative valuation losses from a weaker won and higher grain prices. In food, high oil prices raised logistics and cost burdens while input prices rose, and domestic ingredients faced both price cuts and weak soybean-meal conditions.

Grain and currency markets lie outside management control, structurally amplifying quarterly net income volatility. How far cost-of-goods and fixed-cost reduction plans offset that volatility is the point to watch.

Bio cycle and competition

A credit rating agency assessed that profitability weakened from 2023 on soft global amino-acid conditions and expanded Chinese volumes, with Chinese oversupply intensifying again in 2025.

In 2Q26 high-margin tryptophan saw both volume and price fall on intensifying competition, and the company cited delayed price recovery as a driver of lower profit. Should US and European tariffs on China ease or Chinese capacity additions resume, the lysine windfall could reverse. The lack of a settled restructuring path after the withdrawn green-bio sale also remains an uncertainty.

What to watch next

November 2026
Third-quarter 2026 results and conference call. Key items are whether the guidance of double-digit revenue growth excluding CJ Logistics and a mid-to-high 4% operating margin is met, and how the three units reorganized in July - Lifestyle Food, Technology Materials and Core Materials - are first reported.
Fourth quarter of 2026
Whether the Fair Trade Commission rules on the starch-sugar cartel case and finalizes company-level fines. The confirmed amount would drive additional provisions, directly affecting quarterly net income and equity.
September to December 2026
Lysine, tryptophan and methionine pricing, Chinese supply trends, and whether US and European tariffs on Chinese lysine remain in place. Much of the 2Q26 bio profit recovery leaned on tariff-driven benefits and price increases, so durability needs checking.
Around November 2026
The board resolution on the third-quarter dividend and whether a corporate value-up plan is disclosed. As this is the final year of the fiscal 2024-2026 return policy, any new buyback policy is also worth checking.
Around February 2027
Confirmation of full-year 2026 results and announcement of the next shareholder return policy. It will be the first annual set fully reflecting the bioresource divestment and a checkpoint for any further impairments after 2025.

Overall view

For CJ CheilJedang, 2025 delivered revenue of KRW 27.34tn and operating profit of KRW 1,233.6bn - still a trillion-won-plus operating surplus - yet fine provisions and asset impairments produced a KRW 571.5bn net loss attributable to owners.

In 2026 operating profit improved sequentially to KRW 238.1bn in Q1 and KRW 257.6bn in Q2, but margins stayed in the 3% range and Q2 net income attributable to owners was again slightly negative.

Operationally, overseas food set a record in 2025 and overtook domestic sales for the first time while continuing double-digit growth in 2Q26, whereas domestic food ingredients contracted on price cuts and weak market conditions.

In bio, having switched from divestment to development, margins recovered in 2Q26 on shifting tariff dynamics and a rising specialty mix, though intensifying tryptophan competition cut the other way. Financially, operating cash flow rose to KRW 2,481.6bn while the debt-to-equity ratio climbed to 157.5%.

The calendar to monitor covers delivery against third-quarter guidance, the conclusion of the starch-sugar cartel case, amino-acid pricing and tariff durability, and the next step in the return policy. This report is for information purposes and contains no investment rating, buy or sell opinion, or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.