COVID-19 Boom... CJ Daehan Tongun Achieves Record High Sales

[Asia Economy Reporter Dongwoo Lee] CJ Logistics has set a new annual sales record again after one year, following the record set two years ago. CJ Logistics explained that it offset the slump in port and transportation businesses caused by the economic downturn by early establishing a portfolio focused on retail and e-fulfillment.

CJ Logistics announced on the 8th that its consolidated sales last year reached 10.7811 trillion KRW, with an operating profit of 234.5 billion KRW. Compared to the previous year, sales increased by 3.5% and operating profit by 5.9%. Net profit for the same period surged significantly by 180.3% to 142.6 billion KRW.

In the fourth quarter of last year, CJ Logistics recorded sales of 2.8412 trillion KRW, a 0.5% increase compared to the same period, but operating profit decreased by 10.4% to 90.7 billion KRW.

The contract logistics (CL) division for corporate clients, including frozen and refrigerated goods, posted sales of 650.3 billion KRW in the fourth quarter, down 8.7% year-on-year, but operating profit rose by 4.8% to 31.1 billion KRW. The company offset the slump in port and transportation businesses caused by the economic downturn by early establishing a portfolio centered on retail and e-fulfillment.

During the same period, the parcel delivery division recorded sales of 860.3 billion KRW, up 24.6% year-on-year. However, despite continued high growth, operating profit fell by 7.0% to 34.3 billion KRW. This was analyzed as a delay in the operating leverage effect due to increased subcontracting and trunk line costs and strengthened support for parcel delivery workers.

Global division sales amounted to 1.1525 trillion KRW, down 3.2% year-on-year, and operating profit was 20.4 billion KRW, down 13.2%. The resurgence of COVID-19 during the winter season led to a decrease in cargo volume, causing setbacks despite performance improvements at major hubs such as the United States and India.

The construction division recorded sales of 178.2 billion KRW, down 23.4% from the previous year due to a decrease in external construction sales and delays in timely contract awards. Operating profit was around 5.0 billion KRW, down 59.3%.

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