CJ Logistics reported a double-digit revenue growth in the second quarter of this year, driven by balanced growth across its parcel delivery, contract logistics (CL), and global businesses. However, operating profit declined due to increased investments in service enhancement and rising operational costs.
On August 11, CJ Logistics announced that its consolidated revenue for the second quarter reached 3.38 trillion won, a 10.9% increase compared to the same period last year. In contrast, operating profit fell to 101.6 billion won, down 11.9% year-on-year.
The core O-NE (parcel delivery) segment saw revenue rise to 984.8 billion won, an 8.5% increase. The growth was attributed to the expansion of new services such as the seven-day delivery service 'Every One' and the peer-to-peer delivery service 'Send One,' along with increased volumes from flexible hub terminal operations. However, operating profit in this segment decreased by 10.7% to 40.9 billion won due to the impact of investments in service enhancement.
The contract logistics (CL) division also experienced an 8% revenue increase, reaching 900.1 billion won, driven by expanded volumes from strategic customers and new contracts. While fulfillment center operations and middle-mile transportation continued to grow, operating profit fell by 11.4% to 39.8 billion won due to rising operational costs and infrastructure investment burdens.
The global business unit reported revenue of 1.206 trillion won, a 9.4% increase, supported by growth in strategic markets such as the U.S. and India, as well as increased cross-border logistics (CBE) volumes. However, operating profit decreased by 1.4% to 20.4 billion won as the forwarding market slowed due to the impact of the U.S.-Iran conflict.
A CJ Logistics representative stated, "In the third quarter, we plan to diversify our delivery portfolio, including 'Every One,' and integrate forwarding with our strategic country contract logistics business in the global division. We aim to strengthen our position as a logistics partner that manages our clients' global supply chains comprehensively."
* This article has been translated by AI.
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