(LEAD) CJ Cheiljedang swings to Q2 loss on non-operating losses

South Korean food conglomerate CJ Cheiljedang reported a net loss for the second quarter of 2025, marking a shift from a profit in the same period a year earlier. The company's Q2 loss of 3.9 billion won was primarily driven by non-operating losses, including valuation losses on foreign exchange hedging and derivatives products, largely attributed to the won's weakness and higher grain prices.

Operating profit declined 27.1% to 257.6 billion won, as domestic demand remained sluggish, and increased expenses due to high oil prices and raw material costs impacted earnings. Despite a 1.7% rise in sales to 7.36 trillion won, the company forecasted further strengthening of overseas operations and a business portfolio reorganization to enhance profitability, beginning with the third quarter.

CJ Cheiljedang currently maintains 34 overseas production facilities, with plans to build two more in Hungary and South Dakota.