CJ Logistics' third quarter operating profit decreased by 25.3% to KRW 110.5 billion... “Increased investment” (comprehensive)

CJ Logistics announced on the 10th that its consolidated operating profit in the third quarter of this year was provisionally calculated to be KRW 110.5 billion, a 25.3% decrease from the same period last year.

Sales amounted to 3.3581 trillion won, an increase of 9.5% compared to the same period last year. Net profit decreased by 25.5% to 54.7 billion won.

The Chuseok holiday, which was included in the fourth quarter of last year, was moved forward to the third quarter this year, resulting in a decrease in business days and increased investment costs such as hub terminal operation, leading to a decrease in operating profit.

By business sector, sales in the parcel delivery division recorded KRW 976.5 billion, a 1.2% increase from the same period last year.

Operating profit was KRW 38 billion, a 39.5% decrease from the same period last year due to increased hub terminal investment costs and a decrease in operating days.

Although growth continued in terms of volume, profitability deteriorated.

The total volume of the parcel delivery sector (One sector) in the third quarter increased by 4.6% compared to the same period last year during Chuseok. Among these, early morning and same-day delivery and e-commerce fulfillment volumes grew by 8% and 16%, respectively, compared to the previous year.

Contract logistics sector sales amounted to KRW 933 billion, an increase of 8.3% compared to the same period last year. Operating profit was KRW 49.2 billion, down 11% from the same period last year.

As existing customer volumes increased, new orders were added, but operating profit in this division decreased as the cost burden increased due to rising oil and inflation prices.

CJ Logistics plans to focus on increasing operational efficiency and expanding new orders based on AI and automation technology in the contract logistics sector in the future.

The Global Business Division posted sales of KRW 1.1679 trillion, a 13.1% increase over the previous year. Operating profit was KRW 11.8 billion, a decrease from the same period of the previous year due to prolonged external uncertainties such as investment costs for expanding global bases and oil prices.

The global division plans to focus on expanding volume and improving profitability, focusing on the United States, India, and Vietnam.

CJ Logistics said, "Sales increased compared to the same period last year due to the effect of new orders in all business divisions, but operating profit decreased due to the push to upgrade logistics services and the timing of the Chuseok holiday."