CJ Logistics Posts Q3 Revenue of KRW 3.3581 Trillion...Up 9.5% Year Over Year

Operating profit at KRW 110.5 billion... down 25% year over year
Temporary decline due to differences in Chuseok holiday timing and increased investment
Parcel volumes outpaced market growth... global revenue up 13.1%

CJ Logistics said in a regulatory filing on Nov. 10 that its consolidated revenue for the third quarter of this year was KRW 3.3581 trillion, while operating profit was KRW 110.5 billion. Revenue increased 9.5% year over year, but operating profit fell 25.3%. New orders and increased volumes from existing clients across all business divisions drove overall growth, but differences in the timing of the Chuseok holiday, increased investment to upgrade services, and a worsening external environment weighed on profitability.

By business division, revenue in the O-NE (parcel delivery) division was KRW 976.5 billion, up 1.2% year over year. Although the Chuseok holiday shifted from the fourth quarter last year to the third quarter this year, reducing the number of business days, the division maintained revenue growth through expansion of Maeil O-NE and the individual parcel service Bonae O-NE, as well as flexible operations at hub terminals.

Total parcel volume increased 4.6% year over year, outpacing market growth. Volumes for dawn and same-day delivery rose 8%, while e-commerce fulfillment volumes increased 16%. However, operating profit fell 39.5% to KRW 38 billion, reflecting fewer business days and investment costs to strengthen service competitiveness.

The Contract Logistics (CL) division posted revenue of KRW 933 billion, driven by higher volumes from existing strategic clients and new orders, an 8.3% increase year over year. Revenue from the warehousing and distribution (W&D) business rose 11.8% on increased volumes from existing clients in health and beauty (H&B) and pharmaceuticals, as well as new orders. The P&D business, centered on port handling and middle-mile transportation, also grew on expanded new orders for AI-based transportation services.

Meanwhile, operating profit in the CL division came to KRW 49.2 billion, down 11%, as operating costs were pressured by external uncertainties, including rising oil prices and inflation. CJ Logistics plans to improve productivity at logistics centers by introducing AI-based integrated dispatching and automated equipment, and to improve transportation efficiency by incorporating AI agents and automated dispatching functions into its AI transportation platform, The Unban.

The Global division posted revenue of KRW 1.1679 trillion, up 13.1% year over year, driven by growth in business in strategic countries such as the United States, India, and Vietnam, as well as increased cross-border e-commerce (CBE) volumes. Strategic-country contract logistics and CBE volumes both achieved double-digit growth, driving overall expansion. However, operating profit remained at KRW 11.8 billion due to temporary costs associated with the expansion of global operations and prolonged external uncertainties.

CJ Logistics plans to fully enter the B2C fulfillment business in India and expand orders from leading local companies in Southeast Asia. In forwarding, it plans to diversify its client portfolio into high-value-added industries such as biotech and healthcare, and strengthen its capabilities in global logistics services encompassing transportation and customs clearance.

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