CJ CheilJedang and CJ Logistics report Q2 revenue growth amid profit declines

CJ CheilJedang and CJ Logistics reported their second-quarter financial results, showing revenue growth alongside declines in operating profit.

CJ CheilJedang recorded revenue of 4.195 trillion won, a 10.2% increase from the previous year, but operating profit fell 18.4% to 161.9 billion won. The decline in profitability was attributed to rising food costs, packaging expenses, and raw material prices. However, the company saw growth in its bio business, with revenue increasing 20.8% due to expanded sales of specialty amino acids and lysine. Overseas food sales also grew, particularly in the US, Europe, and Asia-Pacific.

CJ Logistics reported revenue of 3.38 trillion won, up 10.9% year-on-year, while operating profit decreased 11.9% to 101.6 billion won. The company noted that increased investments in service differentiation and external environmental factors, such as rising oil and material prices due to Middle East tensions, impacted profitability. Despite this, the parcel delivery sector saw a volume increase of 12.1%, driven by a 65% surge in early morning and same-day delivery volumes.