(LEAD) CJ Cheiljedang Q2 net down on cost hikes

SEOUL, Aug. 8 (Yonhap) -- CJ Cheiljedang Corp. said Monday its second-quarter net profit dropped 3.4 percent on-year due to price hikes in foodstuffs and transportation fees despite its K-food and bio business expanding overseas.

South Korea's leading food manufacturer logged a net profit of 252.7 billion won (US$193.4 million) on a consolidated basis in the three months ending in June, compared with 247.9 billion won a year ago, the company said in a regulatory filing.

Operating profit came to 504.3 billion won, up 7.4 percent from a year earlier with sales rising 19.1 percent to 7.52 trillion won over the same period.

The on-year drop in net profit was attributed to a global hike in raw materials, transportation fees and labor expenses.

By sector, operating profit from its food business jumped 29.1 percent, pushed by a global popularity of its Bibigo frozen dumplings and ready-made meals.

Sales in China grew 32 percent on-year, followed by a 28 percent increase in Europe and 21 percent in the United States.

Its global markets accounted for 47 percent of total sales generated from its food sector, CJ said.

The company's bio-related business posted record-high operating profits thanks to robust sales growth of its amino acid products in the U.S. and Brazil.

fairydust@yna.co.kr
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