(LEAD) CJ Cheiljedang Q3 net plunges 48.3 pct on higher costs

South Korean food conglomerate CJ Cheiljedang reported a significant decline in its third-quarter net profit, falling 48.3% from the previous year, according to a press release issued on November 10. The company's net profit for the quarter ended in September dropped to 61.6 billion won (approximately US$45.8 million), compared to 119.19 billion won in the same period last year.

The drop in profits was attributed to higher operating costs and reduced gains from its 40.16% stake in CJ Logistics. CJ Logistics reported a third-quarter net profit of 54.7 billion won, down 25.5% from a year ago. Operating profit also decreased by 10.8% to 309 billion won, while sales dipped slightly by 0.6% to 7.39 trillion won.

For the first nine months of the year, the company's net profit plunged 53.5% to 177.61 billion won, down from 381.78 billion won a year earlier. CJ Cheiljedang plans to bolster its food business operations and enhance profitability in its nucleic acid and feed-grade amino acid businesses for the fourth quarter. The company operates 34 overseas production facilities across the United States, Japan, China, Vietnam, Germany, and Australia, and has two additional facilities under construction, in Hungary and South Dakota.