South Korean food giant CJ CheilJedang vowed Tuesday to further unlock K-Food’s growth potential and advance toward becoming a top-tier global company by expanding and diversifying its business portfolio.
At the company’s general meeting of shareholders held earlier in the day in Seoul, Vice Chairman and CEO Kang Sin-ho outlined plans to bolster execution capabilities for global strategic products and capitalize on opportunities across various markets.
“We will develop tailored growth strategies for each country in international markets, grounded in K-Food trends,” Kang said regarding the company's food business.
He explained that the company’s focus in the Americas would be on strengthening market leadership and expanding infrastructure, while in China and Japan, efforts will target business expansion through a balanced approach to growth and profitability.
“Meanwhile, in Europe, the Asia-Pacific region and emerging markets, we will accelerate global business performance by driving volume growth through mainstream expansion,” he added.
Kang noted that despite challenges such as slowing demand and heightened global uncertainties, the company achieved meaningful results driven by K-Food expansion. The company reported a 1.2 percent on-year revenue increase to 29.36 trillion won ($20 billion) last year. Operating profit surged 20.2 percent to 1.55 trillion won.
In the bio sector, the company aims to secure a cost-competitive edge by expanding its clinical pipeline for immuno-oncology drugs, pursuing out-licensing opportunities and exploring new avenues in microbiome science.
The company expects its biodegradable plastics division to grow through quality improvements and cost reduction, while the feed and care division aims to boost fodder production and build a resilient livestock business through value chain optimization.
The company also unveiled a shareholder return plan aligned with profit growth.
Its new three-year dividend scheme includes higher annual dividends of 6,000 won per common share and 6,050 won per preferred share starting from fiscal 2024.
The company reappointed Sohn Kyung-shik, Chairman of CJ Group, as an internal director, while Chung Hwang-keun, former minister of agriculture, food and rural affairs, was appointed as an outside director.
minmin@heraldcorp.com
