CJ Logistics Posts 99 Billion KRW Operating Profit in Q1, Up 31% YoY

CJ Logistics recorded strong first-quarter results driven by the robust performance of its parcel delivery and e-commerce divisions.

On the 4th, CJ Logistics announced that its consolidated financial statements for the first quarter of 2023 showed an operating profit of 99 billion KRW, up 30.9% year-on-year, and a net profit of 48.4 billion KRW, an increase of 53.6% compared to the same period last year.

First-quarter sales amounted to 2.8078 trillion KRW, a 1.7% decrease from the previous year. The significant increase in operating profit and net profit in the first quarter is attributed to profitability-focused management efforts such as price increases and cost structure innovation.

In particular, sales in the parcel delivery and e-commerce divisions rose 7.6% year-on-year to 910.8 billion KRW, while operating profit surged 75.8% to 49.3 billion KRW.

The launch of the integrated parcel delivery brand ‘One’, expansion of customized delivery services such as guaranteed arrival times, and the effect of price increases contributed to a substantial growth in both sales and operating profit.

The CL division recorded sales of 679.4 billion KRW, up 5.0%, and operating profit of 35.0 billion KRW, up 17.9%, driven by increased cargo volume from major automobile customers, acquisition of new clients, price hikes, and operational efficiency improvements.

The global division experienced declines in both sales and operating profit due to a downturn in the forwarding business despite improvements in profitability and supply chain expansion focused on strategic countries such as the United States and India.

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