CJ CheilJedang Q1 2026 Operating Profit Falls 28.5% YoY to $161M
CJ CheilJedang posted Q1 2026 operating profit of $161M, down 28.5% year-over-year and 19.5% quarter-over-quarter. Revenue came in at $4.8B, declining 1.4% YoY.
- CJ CheilJedang's Q1 2026 operating profit dropped 28.5% YoY to $161M, missing on profitability
- Revenue slipped 1.4% YoY to $4.8B, though net income swung to a $81M profit from a prior-quarter loss
CJ CheilJedang recorded Q1 2026 operating profit of $161M, down 28.5% year-over-year. (Source: DART consolidated financial statements — preliminary operating results fair disclosure, May 12, 2026)
Results at a Glance
Both revenue and operating profit declined year-over-year and quarter-over-quarter. Net income, however, swung to a profit from a large loss in the prior quarter and more than doubled compared to the same period last year.
- Revenue: $4.8B, -1.4% YoY, +1.5% QoQ
- Operating Profit: $161M, -28.5% YoY, -19.5% QoQ
- Operating Margin (Operating Profit / Revenue): ~3.3%
- Net Income: $81M (turned profitable from a $542M net loss in Q4 2025; +108.8% YoY)
- Net Income Attributable to Controlling Interests: $55M (turned profitable from a $557M loss in Q4 2025; +363.8% YoY)
Notes on Interpreting the Figures
The prior-year comparison figures (Q1 2025) disclosed in the filing have been restated due to accounting changes. The planned divestiture of the Brazilian subsidiary (CJ SELECTA and others) was withdrawn, prompting the resumption of previously suspended depreciation, while 14 subsidiaries in the Feed & Livestock (F&C) segment were reclassified as discontinued operations. As a result, the prior-year comparable revenue was restated from $4.9B to $4.5B, and operating profit from $226M to $195M. The year-over-year comparisons cited in the filing are based on the pre-restatement figures.
Market Reaction
Major outlets including Yonhap Infomax characterized the results as the bio segment "working through a trough." Opinion News highlighted the disconnect between K-Food growth momentum and the lack of a corresponding improvement in company-wide profitability. Additional market data such as share price and foreign ownership ratio were not included in this disclosure.
This article was auto-generated based on the original DART disclosure and domestic and international media reports. It is intended to deliver key data points promptly following the announcement. Readers are advised to review the company's official disclosure before making any investment decisions.
097950Frequently Asked Questions
Why did CJ CheilJedang's operating profit fall so sharply in Q1?
The filing does not detail segment-level causes. However, market analysts broadly cite weakness in the bio segment (amino acids, etc.) as the primary driver. A full breakdown by business unit will be available in the quarterly report to be filed at a later date.
What are 'discontinued operations' in this context?
When a company decides to sell or exit a specific business segment, the profit and loss from that segment are separated and reported apart from the rest of the business. In this case, 14 subsidiaries in the Feed & Livestock (F&C) segment entered a sale process following the signing of a share purchase agreement, and their financials were reclassified accordingly. The revenue and operating profit figures in this release are presented on a continuing operations basis, excluding those subsidiaries.
Net income improved significantly from last quarter — does that mean the business is recovering?
The prior quarter (Q4 2025) recorded a large net loss of $542M, so the $81M profit this quarter largely reflects a reversal of that one-time impact. On the other hand, operating profit — the key measure of core business performance — declined 28.5% YoY, indicating that underlying profitability remains under pressure.
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