CJ Foodville, the operator of bakery chain Tous Les Jours and a subsidiary of South Korean food giant CJ Group, achieved its highest-ever operating profit of 45.3 billion won ($33.6 million) last year. Some 60 percent of the profit stemmed from overseas ventures in key markets like the United States, Indonesia and Vietnam, showcasing the firm's commitment to advancing Korean-style baked goods worldwide.
CJ Foodville announced its consolidated sales for 2023 on Wednesday, totaling 844.7 billion won, reflecting an 11.2 percent increase from the previous year. Its operating profit surged by 73.6 percent year-on-year, marking the third consecutive year of surplus since turning to profit in 2021.
"Despite the rise in costs of general ingredients and limitations on domestic expansion due to regulations on store openings, we were able to achieve commendable performance through our overseas business operations," a CJ Foodville official said.
Currently, CJ Foodville has expanded its presence to seven countries globally.
Among them, CJ Foodville USA, established in 2004, has broken new records for six consecutive years since becoming the first overseas subsidiary to turn a profit in 2018. Last year, its sales increased by 38 percent, exceeding 100 billion won. Operating profit also surged by 179 percent year-on-year, achieving a record-high growth.
In October last year, CJ Foodville established TLJ America LLC, a subsidiary of CJ Foodville USA, aiming to oversee the Tous Les Jours' US bakery production plant, scheduled for completion in 2025. The plan is to build a 90,000-square-meter plant in Gainesville, Georgia, with an annual production capacity exceeding 100 million products dedicated for sale in the US.
Tous Les Jours opened its 100th store in Bronxville, New York, in August last year, marking a milestone two decades after entering the US market. Presently, the chain boasts 112 stores, strategically located in prominent areas including LA, New York, New Jersey and Massachusetts. CJ Foodville has set its sights on securing 1,000 Tous les Jours stores in the US by 2030.
Meanwhile, Tous Les Jours branches in Indonesia and Vietnam continued their streak of surpluses for the second consecutive year.
In Indonesia, sales increased by 20 percent, and operating profit rose by 27 percent from the previous year. With double-digit operating margins maintained for the second consecutive year, CJ Foodville operates over 60 stores and plans further expansion, particularly in major cities such as Jakarta, Tangerang, Bekasi, Bandung and Bali.
Despite challenging market conditions, CJ Foodville Vietnam also sustained a surplus by engaging in partnerships with local businesses or adopting online-to-offline commerce to diversify its profit structure.
“Leveraging our strong surplus structure, we aim to further advance as a global F&B company this year," a CJ Foodville official said.
