CJ Freshway Recovers from COVID-19 Impact... Operating Profit Turns Positive in Q2

[Asia Economy Reporter Choi Saeng-hye] CJ Freshway, a CJ Group company specializing in food ingredient distribution and group catering, posted significantly improved results in the second quarter compared to the first quarter.

CJ Freshway announced on the 12th that it recorded sales of 624.5 billion KRW and an operating profit of 2.7 billion KRW in the second quarter. Compared to the same period last year, sales decreased by 18% and operating profit dropped by 86%. However, compared to the first quarter of this year, which was severely impacted by COVID-19, sales increased by 4%, and operating profit rose by 121%, successfully returning to profitability.

In particular, from May, which included the golden holiday period, as the spread of COVID-19 subsided and economic activities resumed, sales began to recover, and operating profit also turned positive, according to analysis.

By business segment, food ingredient distribution sales rose 4% from the first quarter to 496.8 billion KRW, while group catering sales increased by 8% to 109 billion KRW.

A CJ Freshway official stated, "Despite the challenging market environment caused by the economic downturn and reduced consumption due to COVID-19, we achieved sales growth in our core businesses of food ingredient distribution and group catering, and improved second-quarter performance through efficient fixed cost management. Although the food service industry, our upstream sector, remains sluggish, we will do our best to achieve a performance rebound in the second half by expanding customized sales activities and strengthening the concession (food and beverage consignment operation) sector, including museums and rest areas where the number of users is increasing."

This content was produced with the assistance of AI translation services.