CJ Freshway Achieves Record High Performance Last Year... "Strong Food Ingredients and Group Catering"

Record Highs with Sales of 3.0742 Trillion KRW and Operating Profit of 99.3 Billion KRW
Expansion of Food Material Distribution Customers and Strong Group Meal Service Business

CJ Freshway achieved record-high sales and operating profit, driven by an increase in food ingredient distribution customers and strong performance in the group catering business.

CJ Freshway announced on the 8th through a public disclosure that its consolidated sales last year were tentatively estimated at 3.0742 trillion KRW, an 11.9% increase compared to the previous year. Operating profit during the same period rose 1.4% to 99.3 billion KRW. In the fourth quarter of last year, sales reached 788.2 billion KRW, and operating profit was 24.3 billion KRW, up 10.9% and 39.9% respectively from the same period the previous year.

Sales in the food ingredient distribution business reached 2.2858 trillion KRW, solidifying its position as the industry leader. In the dining-out food ingredient sector, CJ Freshway supplied ingredients to approximately 17,000 dining establishments through steady acquisition of new customers and growth of existing ones. The number of projects for the one-stop consulting service for launching dining brands, called ‘Dining Solution,’ also increased sixfold compared to the previous year, gaining momentum. In the catering food ingredient sector, the company increased market penetration in kindergartens, schools, and elderly welfare facilities, led by its private brands (PB) such as ‘Ainuri’ (infants and toddlers), ‘Tunteun School’ (youth), and ‘Healthy Nuri’ (elderly).

The group catering business posted sales of 726.1 billion KRW, achieving the highest performance ever. Profitability was significantly expanded by consecutive wins of large client contracts. The expansion of high value-added services such as mobile catering and takeout, in addition to facility catering like employee cafeterias, also contributed to this success. Efforts were made to differentiate menus as well. Collaborations with popular MZ generation (Millennials + Generation Z) brands like Elephant Bagel, as well as introducing self-developed menus from central kitchens, enhanced satisfaction for both client companies and users.

The manufacturing business recorded sales of 62.3 billion KRW. Based on various infrastructures including its subsidiary ‘Fresh Plus,’ which manufactures sauces, concentrates, and seasonings, as well as the R&D center and central kitchens, CJ Freshway is creating synergy effects and accelerating the development of customized products for customers.

Following the ‘Food Business Partner’ vision declared in 2021, CJ Freshway is achieving meaningful growth by actively implementing solution strategies that support customer growth. By providing solutions needed from the customer’s perspective, the company’s customer retention rate exceeded 70% last year, and it newly launched the ‘CJ Freshway Only One Biznet’ site, which gathers about 80 different solutions in one place. The country’s largest B2B food and beverage industry expo, ‘Food Solution Fair 2023,’ was also successfully held.

Choi Seok-jung, Chief Financial Officer (CFO) of CJ Freshway, said, “Despite the high external uncertainties, this result comes from continuously expanding solutions that prioritize customer value and help customers overcome difficulties.” He added, “We will achieve meaningful growth through strengthening fundamental competitiveness across the entire value chain including sales, products, IT, and logistics, as well as preparing for future businesses.”

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