CJ Freshway continued its revenue growth in the second quarter, driven by an increase in food distribution and catering services despite a slowdown in the dining sector. The company's online business, particularly the B2B food distribution platform 'Sikbom,' has seen rapid growth, contributing significantly to its expansion.
On August 6, CJ Freshway announced that its consolidated revenue for the second quarter reached 923.2 billion won, with an operating profit of 23.5 billion won. This marks a 4.5% increase in revenue compared to the same period last year, while operating profit decreased by 14.5%. During the same period, gross merchandise volume (GMV) rose by 13.3% to 1.363 trillion won.
The food distribution and ingredient supply business generated 418.4 billion won in revenue, with online sales increasing by 51% year-over-year. The growth of the Sikbom platform, which CJ Freshway acquired a stake in last March, has bolstered these results.
CJ Freshway has enhanced its online competitiveness by more than doubling its integrated delivery offerings that link its existing logistics network with the Sikbom platform. As a result, Sikbom's cumulative transaction volume for the second quarter reached 151.3 billion won, a 25.8% increase from the previous year.
Sales in the food ingredient and franchise sectors also continued to grow. The food ingredient segment saw a 14.3% increase in revenue, while franchise sales rose by 11%, driven by data-based sales strategies that attracted new customers.
The catering business reported sales of 498.3 billion won, with an expansion in supplies for kids' and school meals, and a 4.9% growth in the group meal sector. The volume of new contracts increased by 43.7% compared to the same period last year, with new military catering contracts secured at the Army Training Center and the Marine Corps 1st Division. Concession sales also grew by 21%.
However, operating profit declined due to proactive investments in the open market for food ingredients. CJ Freshway is strategically allocating resources to develop Sikbom as a future growth driver, focusing on marketing and platform enhancement. Although initial investment costs have impacted profits, the company maintains stable growth across its food distribution and catering sectors.
CJ Freshway plans to strengthen its online business competitiveness centered around Sikbom in the second half of the year while enhancing product and logistics services to improve operational efficiency.
Im Seong-cheol, Chief Financial Officer of CJ Freshway, stated, "We aim to cultivate Sikbom as a core pillar of future growth and lead the digital transformation of the food distribution market. We will continue to invest in enhancing the competitiveness of our food distribution and catering businesses to establish a sustainable growth foundation."
* This article has been translated by AI.
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