SEOUL, Feb. 8 (Korea Bizwire) — CJ Cheiljedang Corp., South Korea’s leading food manufacturer, said Thursday its net profit rose 16.8 percent in 2017 from a year earlier on the back of brisk performance of its processed foods and overseas businesses.
Net income came to 412.8 billion won (US$379.3 million) on a consolidated basis last year, up from the 353.3 billion won posted a year earlier, the company said in a regulatory filing.
Sales increased 13.1 percent on-year to 16.5 trillion won, while operating profit dropped 7.9 percent to 776.6 billion won over the cited period, it said.
The company attributed the growth in revenue to its expansion of overseas businesses, including the acquisition of Brazilian firm Selecta, which produces soy protein concentrate.
CJ Cheiljedang said operating profit decreased due to advertising costs for its processed food business and sluggish market conditions for the feed and livestock division.
The company said it will invest 361.3 billion won in the next three years to build a new food production facility in Jincheon, 90 kilometers south of Seoul. The new plant will be capable of producing 95,000 tons of foodstuffs annually.
Shares of CJ Cheiljedang closed down 1.74 percent at 339,000 won on the main bourse Thursday, with the broader KOSPI index climbing 0.46 percent. The earnings results were released after the stock market closed.