CJ Freshway Reports KRW 883.3 Billion in Q2 Sales, Up 8.9% Year-on-Year

Continued External Growth Amid Economic Downturn
Operating Profit Down 9%... "Absorption-Type Merger Costs Reflected"

CJ Freshway continued its external growth trajectory despite management uncertainties such as the downturn in the dining-out market and weakened consumer sentiment.

On August 7, CJ Freshway announced that its sales for the second quarter of this year reached KRW 883.3 billion, an 8.9% increase compared to the same period last year. During the same period, operating profit was KRW 27.4 billion, a decrease of 9%.

A company representative explained, "One-off costs related to the absorption-type merger of a subsidiary were reflected," adding, "The synergy effect from the merger is expected to materialize in earnest in the second half of the year through enhanced product and logistics competitiveness." Last month, CJ Freshway completed the absorption-type merger of its regional foodservice ingredient distribution subsidiary, Freshone.

CJ Freshway CI. CJ Freshway

By business segment, sales from the foodservice ingredient and food material distribution business recorded KRW 393.1 billion. Online foodservice ingredient sales increased 2.5 times year-on-year, driven by diversification of sales channels centered on the commerce platform and expanded marketing and promotional activities. The average monthly sales in the second quarter exceeded KRW 10 billion. In the foodservice ingredient distribution segment, new clients were secured mainly among large franchise operators, while the food material distribution segment succeeded in developing and expanding the supply of exclusive sauces for foodservice brands.

Sales from the foodservice business reached KRW 484 billion, with both the foodservice ingredient distribution and group catering segments showing growth. The company achieved stable results by supplying foodservice ingredients through various channels, including childcare centers, schools, military bases, and senior welfare facilities. In particular, sales from the senior segment increased by 20% year-on-year due to growing demand for senior meals driven by population aging. The group catering segment continued to win contracts primarily from large corporations and resorts, while also entering new markets such as military bases and apartment complexes.

Lim Sungcheol, Chief Financial Officer (CFO) of CJ Freshway, stated, "With the completion of internal procedures to consolidate business capabilities, including the merger of subsidiaries, we expect to see full-fledged synergy effects beginning in the second half of the year." He added, "We will do our utmost to execute future growth strategies based on our fundamental competitiveness in products and logistics."

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