"CJ Freshway Achieves Balanced Growth in Food Ingredients and Catering, 1Q Operating Profit Up 19%"

Revenue of 697.5 Billion KRW... 23.6% Increase Compared to Previous Year

CJ Freshway started this year's first quarter on a positive note as all its core businesses, including food ingredient distribution and group catering, showed balanced growth.

CJ Freshway announced on the 10th through a public disclosure that its consolidated operating profit for the first quarter of this year was 12.7 billion KRW, a 19.3% increase compared to the same period last year. Sales during the same period rose 23.6% to 697.5 billion KRW.

By segment, sales in the food ingredient distribution business reached 525.1 billion KRW, up 20.8% year-on-year. This is attributed to generating stable sales through a balanced portfolio including dining out, catering, and distribution, as well as efforts to secure new clients and maintain existing ones by strengthening the solutions business. In the dining out channel, large franchises with annual sales exceeding 20 billion KRW were attracted as clients, while in catering, customized brands for each generation?▲ Ainuri (infants and toddlers), ▲ Ttuntun School (youth), and ▲ Healthy Nuri (middle-aged and older)?showed high growth rates. In the second quarter, differentiated solutions such as brand and menu consulting, along with the launch of new private brand (PB) products and services, are expected to continue.

Sales in the group catering business recorded 156 billion KRW, a 39% increase compared to the same period last year, driven by active new business order activities. Selective business orders aimed at maximizing profitability, along with the expansion of the takeout-specialized brand ‘Snack Pick’ in line with food culture trends, also contributed to the results. Snack Pick expanded its product range from snacks to frozen convenience meals, salads, and bakery items, attracting visitors to company cafeterias. CJ Freshway plans to enhance customer satisfaction ahead of the peak vacation season by reorganizing leisure and concession stores and composing seasonal menus.

Manufacturing business sales amounted to 16.4 billion KRW. Although this represents a slight decrease of 6.7% compared to the same period last year, the company expects the effects of the merger of subsidiaries (Songlim Food and J Farms) initiated in March to improve management efficiency to gradually appear. These subsidiaries will embark on full-scale business restructuring to further strengthen manufacturing capabilities.

CJ Freshway plans to actively discover business models that enable mutual growth among customers, partners, and the entire market, leveraging solid performance throughout the year. Through expanding customer touchpoints and collaborating with online platforms to revitalize the market, as well as providing various solutions optimized for dining out and catering businesses, the company will accelerate the realization of its vision as a ‘Food Business Partner.’

A CJ Freshway official stated, “The strategy of acquiring customers based on customized solutions and focusing on profitability-centered business orders was effective,” adding, “As a leading player in the domestic industry, like Cisco, a global company that has advanced the food ingredient distribution industry in the United States, we will continue to invest and take on challenges for market development.”

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