CJ ENM Commerce Division Reports Q2 Operating Profit of 19.5 Billion KRW, Down 34.7%

[Asia Economy Reporter Yuri Kim] CJ ENM announced on the 4th that its consolidated operating profit for the second quarter of this year was 55.6 billion KRW, a 35.2% decrease compared to the same period last year. During the same period, sales increased by 31.3% to 1.1925 trillion KRW. It explained that sales increased due to expanded content competitiveness and strengthened global business competitiveness, but operating profit decreased due to poor profitability.

During this period, the commerce division's operating profit was 19.5 billion KRW, down 34.7% from the same period last year. Sales decreased by 1.6% to 351.7 billion KRW. The decline in handling volume and increased costs affected the profit margin.

The company stated, "In the first half of this year, the reopening atmosphere intensified the offline consumption concentration phenomenon, and TV broadcasting fees and investment costs for future sustainable growth increased, resulting in a decline in performance compared to the previous year." However, it also noted meaningful achievements such as an increase in mobile active users (MAU), growth in handling volume of in-house brands, and digital sales.

In the second half of the year, the company plans to focus on improving scale and profitability by strengthening a high-profit product portfolio including beauty and health functional foods. It plans to expand distribution channels for its in-house brands and maximize sales during the fall/winter (FW) main season for fashion products to recover handling volume. It will also continue to strengthen differentiated content commerce competitiveness through nurturing unique mobile live commerce IPs such as 'Butina Saenghwal' and collaborations with the entertainment division including 'Get It Beauty' and 'Street Man Fighter.'

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