CJ CheilJedang Corp. saw its operating profit for the first quarter fall by nearly 8 percent due to weak domestic demand.

CJ CheilJedang said in a regulatory filing on Tuesday that its operating profit, excluding that of its subsidiary CJ Logistics Corp., stood at 246.3 billion won ($174.7 million) in the first quarter, down 7.8 percent from the same period a year ago.

Revenue also fell 1.8 percent to 4.36 trillion won.

Including CJ Logistics, CJ CheilJedang’s operating profit fell 11.4 percent to 333.2 billion won, with revenue edging down 0.1 percent to 7.21 trillion won.

Net income plunged 62.9 percent to 57.4 billion won.

In the food segment, sales rose 3 percent to 2.93 trillion won, but operating profit dropped 30 percent to 128.6 billion won.

Domestic food sales plunged to 1.44 trillion won, as weak consumption offset a 33 percent surge in online sales driven by the digital transition of processed foods.

Overseas food sales, on the other hand, rose to 1.49 trillion won, exceeding domestic sales.

Overseas growth accelerated with an 8 percent increase, accounting for 51 percent of its entire food revenue and exceeding 50 percent for the second consecutive quarter.

Global recognition of its signature brand Bibigo drove balanced growth across North America, Europe, and Oceania.

In North America, shelf-stable rice (up 39 percent), pizza (up 10 percent), and rolls (up 23 percent) lifted sales to 1.25 trillion won. Sales in China and Japan also grew more than 15 percent, led by dumplings and other core products.

In Europe and Oceania, sales rose 36 percent and 25 percent, respectively, driven by expansion into major retail channels and new product categories.

New products such as dumplings, hot dogs, gochujang, and ssamjang were introduced across Germany, the U.K., France, and the Netherlands.

Partnerships with Woolworths, Coles, and IGA in Oceania further boosted performance.

In the bio business, revenue declined 12 percent to 895.4 billion won and operating profit fell 16 percent to 82.5 billion won, mainly due to a high base effect from high-value products like tryptophan and specialty amino acids last year.

The market for lysine recovered after the European Union imposed anti-dumping duties on Chinese imports. Specialty products such as arginine, histidine, and valine now represent over 20 percent of total bio sales.

CJ Feed&Care, a separate feed and livestock subsidiary, recorded 542.5 billion won in sales and 35.2 billion won in operating profit.

Although sales dipped due to lower feed prices, profitability improved from restructuring and a recovery in livestock business performance in Vietnam and Indonesia.

CJ CheilJedang said it will accelerate global business expansion, maximize profitability, and secure future growth drivers.

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