CJ Freshway Reports Q1 Operating Profit of 106.3 Billion KRW, Up 0.8% Year-on-Year

Sales Reach 798.6 Billion KRW
Up 9.2% Year-on-Year

CJ Freshway achieved growth in both sales and operating profit despite the downturn in the dining-out market and the seasonal off-peak period.

On May 9, CJ Freshway announced that its consolidated operating profit for the first quarter of this year reached 106.3 billion KRW, marking a 0.8% increase compared to the same period last year.

During the same period, sales rose by 9.2% to 798.6 billion KRW, and net profit for the period also grew by 21% to 1.5 billion KRW.

CJ Freshway Logistics Center exterior. CJ Freshway

Sales from the foodservice ingredient and food raw material distribution business reached 379.9 billion KRW. This business targets restaurant operators, distribution agencies, and food manufacturers. The most notable growth channel in the first quarter was online. As more restaurant operators became accustomed to online ordering, CJ Freshway expanded its product assortment and diversified its delivery services, resulting in a threefold increase in online channel distribution sales compared to the same period last year. The company also explained that new orders from profit-focused foodservice franchises contributed to the performance.

Sales from the foodservice business, which combines food ingredient distribution and group catering, totaled 412.4 billion KRW. All food distribution channels, segmented by life cycle from infants to seniors, achieved balanced growth. The group catering business saw increased sales after opening a premium food court at Incheon Airport, one of its major sites, and new order volume rose by 65% compared to the same period last year.

Lim Sungcheol, Chief Financial Officer (CFO) of CJ Freshway, stated, "Despite the domestic economic downturn, we achieved simultaneous growth in the foodservice and catering businesses by strengthening our product and logistics competitiveness." He added, "To adapt to the rapidly changing environment, we will further develop our future growth strategies centered on O2O (online-to-offline) ingredient distribution and kitchenless catering (mobile catering) services, and enhance corporate value by expanding new customer acquisitions and improving our business structure."

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