This article first appeared on GuruFocus .
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sales increased by 4.3% year on year to KRW4.0271 trillion, driven by global GSP sales and new product launches in the Korea Food business.
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Net income rose significantly by KRW71.1 billion year on year, attributed to improved non-operating income, including gains from raw material derivatives and foreign exchange.
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The Korea Food business saw a profit increase due to strong new product sales and cost optimization, with operating profit rising by KRW14.4 billion year on year.
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Global food business sales grew by 4.5% year over year, with notable growth in Europe and APAC regions driven by GSP products.
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CJ Logistics experienced a 7.4% year-on-year sales increase, supported by market share gains and new contract wins, leading to a KRW6.7 billion rise in operating profit.
Negative Points
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Operating profit decreased by KRW52.2 billion year on year, with an OP margin of 3.7%, mainly due to lower selling prices in the BIO business.
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Overall profit in the global food business slightly declined year on year due to higher advertising and promotional expenses.
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BIO business operating profit decreased by KRW66.6 billion year on year, impacted by intensified competition and lower selling prices for major products.
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Lysine and tryptophan sales in the BIO business declined due to falling selling prices and intense competition.
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FI sales in the Korea Food business declined by 7% year on year, affected by lower selling prices and weaker soybean meal market conditions.
Q & A Highlights
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Q: Can you provide more details on the decline in operating profit despite the increase in sales? A: Gi-Sung Chun, Head of Corporate Finance, explained that the decline in operating profit, which decreased by KRW52.2 billion year on year, was primarily due to lower selling prices for major products in the BIO business. Despite improved profitability in the Korea Food business, these factors led to an overall decrease in operating profit.
Q: What are the key drivers behind the sales growth in the Food business? A: Gi-Sung Chun highlighted that the Food business saw a 3.9% year-on-year increase in sales, reaching KRW3.0384 trillion. This growth was driven by strong performance in global markets, particularly with mandu leading GSP sales growth, and geographic expansion into new markets such as Europe and Oceania. In Korea, new product performance and growth in online and CVS channels also contributed to the sales increase.
Q: How is the BIO business performing, and what are the expectations for the future? A: Gi-Sung Chun noted that BIO sales increased by 5.7% year on year to KRW988.7 billion, with higher volumes of specialty products like arginine and nucleotides. However, operating profit decreased due to intensified competition and lower selling prices for major products. Looking ahead, the company expects a meaningful recovery in profitability from Q2, supported by improving demand and cost structure advantages.
Q: What strategic initiatives are planned for the global food business? A: Gi-Sung Chun outlined plans to sustain growth by expanding strategic GSP products across key regions. In the US, efforts will focus on strengthening Bibigo brand awareness and creating new demand for products like shelf-stable rice. In Europe, the company aims to expand listings in mainstream retail channels and launch new products. The expansion of the New Hungary plant is also expected to drive GSP sales growth.
Q: What is the outlook for Q2 2026 in terms of sales and profitability? A: Gi-Sung Chun provided guidance that consolidated sales are expected to grow at a mid-single-digit rate year over year in Q2 2026, with an operating margin around 4%. The global food business is anticipated to continue sales growth, particularly in Europe and APAC, while the BIO business is expected to see improvements in both sales and profitability, driven by a recovery in specialty products.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
