CJ CheilJedang's preliminary results for Q2 2026: Operating profit decreased by 27%, and the company shifted to a net loss

CJ CheilJedang announced its preliminary consolidated operating results for the second quarter of 2026 (April-June) on August 11, 2026. Revenue reached 7.3621 trillion won, a 3.5% increase compared to the previous quarter (7.111 trillion won) and a 1.7% increase compared to the same period last year (7.2372 trillion won). However, operating profit was 257.6 billion won, an 8.2% increase compared to the previous quarter (238.1 billion won), but a sharp 27.1% decrease compared to the same period last year (353.1 billion won). From a profitability perspective, the decline is even more pronounced. Pre-tax income from continuing operations, which was a profit of 237.6 billion won in the same period last year, turned into a loss of 32 billion won. Net income also shifted from a profit of 209.1 billion won to a net loss of 39 billion won. The net loss attributable to the parent company's shareholders was 13.5 billion won, a significant deterioration compared to the same period last year (a net profit of 162.5 billion won). The cumulative results for the first half of the year (January-June) are also generally weak. Cumulative revenue reached 14.4732 trillion won, a slight increase of 0.2% compared to the same period last year. Cumulative operating profit was 495.7 billion won, a decrease of 27.3%. Cumulative net income was 116 billion won, a sharp decrease of 55.8%, and cumulative net income attributable to the parent company's shareholders was 68.3 billion won, a decrease of 61.2%. A key factor in interpreting these results is the change in accounting treatment for the F&C division. Due to the signing of stock purchase agreements (SPAs) with 14 subsidiaries in the F&C division, including CJ Feed & Care, the operating results of this division are being reclassified as discontinued operations. Consequently, the comparative figures for the same period last year will also be retroactively adjusted. When the changes are applied, the revenue for the second quarter of 2025 would decrease from 7.2372 trillion won to 6.7204 trillion won, and operating profit would decrease from 353.1 billion won to 316.2 billion won. Therefore, the magnitude of the decrease in operating profit for this second quarter may appear different under this revised basis, requiring attention from investors. The company stated that the figures before the change have been reviewed by external auditors, while the figures after the change have not yet been reviewed. The final financial statements, reflecting the adjusted figures, will be available in the semi-annual report to be disclosed later. The preliminary results presented here have not been fully audited, and the figures may be subject to change based on the audit results. A conference call to discuss the results was held on August 11, 2026, at 9:30 AM.