"CJ Freshway Achieves Record Net Profit of 31.1 Billion KRW Last Year, Returns to Profitability"

[Asia Economy Reporter Eunmo Koo] CJ Freshway announced on the 11th through a public disclosure that it achieved a record high net profit of 31.1 billion KRW last year. During the same period, sales reached 2.2914 trillion KRW, and operating profit was 55.6 billion KRW, with an operating profit margin hitting an all-time high of 2.4%. This was the result of strengthening business competitiveness through differentiated strategies by sector, including business portfolio restructuring, targeting the kids and senior food ingredient markets, and expanding new group meal service orders.

By sector, sales in the food ingredient distribution division amounted to 1.7646 trillion KRW, down about 11% compared to the previous year, but operating profit improved to 39 billion KRW, successfully escaping losses and achieving structural improvement. Sales in the core dining out and meal service business of the food ingredient distribution division increased by 12% year-on-year to 976.2 billion KRW, driven by recovery in consumer sentiment, price increases, and stable business operations focused on franchise and meal service companies. The sales scale of the kids and senior food ingredient specialized brands ‘Ainuri’ and ‘Healthy Nuri’ grew by 110% and 82%, respectively, compared to 2018, marking growth over three years.

Sales in the group meal service division slightly increased to 455.5 billion KRW year-on-year, and operating profit turned positive, reaching 10.1 billion KRW. The main factors for the turnaround to profitability were consecutive successes in new orders for golf course concessions and hospital meal service businesses, price adjustments according to market trends, and selective order acceptance improving the profit structure.

The manufacturing division saw significant increases in both sales and operating profit, fueled by the explosive growth of the home meal replacement market. Sales reached 71.3 billion KRW, and operating profit was 6.5 billion KRW, representing increases of 22.7% and 132.1%, respectively, compared to the previous year. Subsidiaries specializing in sauces, Songrim Food, and agricultural product preprocessing, J Farms, maintained continuous growth, driving performance.

Despite uncertain external conditions last year, CJ Freshway laid the foundation to leap forward as a ‘Food Business Partner’ by achieving the highest net profit in its history. This year, it plans to pursue diversified business strategies such as optimizing logistics infrastructure, accelerating digital transformation, commercializing customer solutions, and strengthening ESG management.

A CJ Freshway representative said, “We were able to achieve solid results based on expanding new clients, diversifying business channels, and improving the profit structure,” adding, “This year, we will further strengthen our core competitiveness and lead more innovative changes as a ‘Food Business Partner’ through pioneering new markets and discovering new business models.”

Meanwhile, sales in the fourth quarter of last year were 606.7 billion KRW, up 1.1% year-on-year. Operating profit and net profit turned positive compared to the same period last year, reaching 17 billion KRW and 5 billion KRW, respectively.

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