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Health care propels CJ Cheiljedang’s stellar earnings

Aug 09,2018
CJ Cheiljedang, Korea’s leading food manufacturer, said Wednesday that its net profit surged 18-fold in the second quarter of this year from a year earlier, driven by proceeds from the sale of its health care unit.

The company’s net income came to 783 billion won in the April-June period, up from 43 billion won posted a year earlier, the company said in a regulatory filing.

In April, CJ Cheiljedang sold its wholly-owned CJ HealthCare to Kolmar Korea, an original development manufacturing cosmetics firm, for 1.31 trillion won.

CJ Cheiljedang said its operating profit gained 12.3 percent on-year to 184.6 billion won and sales were up 13.9 percent to 4.45 trillion won over the period.

Apart from the divestiture, robust sales growth from the company’s processed food and bio divisions contributed to the firm’s stellar earnings.