CJ Logistics Reports Q2 Operating Profit of 101.6 Billion Won, Down 11.9% Year-on-Year

Impact of Increased Investment and Worsening External Conditions
Sales Rise by 10.9% to 3.38 Trillion Won

The second-quarter results of CJ Logistics have been released.

Delivery vehicles are parked at the CJ Logistics terminal. Photo by Yonhap News Agency

According to a disclosure on August 11, CJ Logistics reported on a consolidated basis that its sales and operating profit in the second quarter of this year were provisionally tallied at 3.38 trillion won and 101.6 billion won, respectively.

Compared to the same period last year, sales increased by 10.9%, continuing quantitative growth following the first quarter. However, operating profit declined by 11.9% due to an increase in investment and the deterioration of external conditions.

By business segment, the Parcel Delivery (O-NE) division posted sales of 984.8 billion won, up 8.5% from the same period last year. This growth is attributed to strengthened service competitiveness through seamless delivery services such as “Maeil O-NE” and the newly introduced C2C delivery service “Bonae O-NE” this year, as well as increased overall volume thanks to the flexible operation of hub terminals.

During the same period, operating profit for the parcel delivery division decreased by 10.7% year-on-year to 40.9 billion won, mainly due to investments to upgrade service offerings.

The Contract Logistics (CL) division recorded sales of 900.1 billion won, up 8% from the same period last year. The growth momentum in key operations such as fulfillment center management and middle-mile transportation was maintained, driven by increased volume from strategic clients and the reflection of large-scale new orders in sales. In contrast, operating profit was tallied at 39.8 billion won, down 11.4% year-on-year, due to increased operating costs from external negative factors and investments in infrastructure.

The Global Business division reported sales of 1.206 trillion won and operating profit of 20.4 billion won. Compared to the second quarter of last year, sales rose by 9.4%, while operating profit saw a slight decrease of 1.4%.

Despite the slowdown in the forwarding market due to the war between the U.S. and Iran, the company explained that steady growth in strategic markets such as the U.S. and India, along with an increase in cross-border e-commerce (CBE) volume, supported sales growth.

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