CJ Logistics has revealed that its parcel division is on the verge of achieving quarterly sales of 1 trillion Korean won, with projections indicating that this milestone could soon be reached. The company announced its third-quarter financial results, showing strong growth across several business segments.
On the 7th, CJ Logistics disclosed that it generated sales of 3.066 trillion Korean won and an operating profit of 147.9 billion Korean won during the third quarter, according to its consolidated financial statements. Compared to the same period in the previous year, sales increased by 3.1%, while operating profit rose by 4.4%. This performance reflects a positive trend across the company’s operations.
The core parcel business played a significant role in driving this growth. Sales from the parcel (O-NE) division reached 965 billion Korean won, representing a 7.4% increase compared to the same period last year. Operating profit for this segment surged by 16.6% to 62.8 billion Korean won. A representative from CJ Logistics explained, “Starting in June, the recovery in consumer sentiment and the full-scale implementation of 7-day-a-week delivery (Maeil-One) led to a rebound in parcel volumes. Sales from new businesses such as same-day delivery, dawn delivery, and fulfillment also expanded.”
The parcel industry typically experiences peak season during the fourth quarter. Industry analysts believe that CJ Logistics may achieve its first-ever quarterly parcel sales exceeding 1 trillion Korean won during this period. This would mark a significant milestone for the company, highlighting its growing influence in the logistics sector.
In addition to the parcel business, the contract logistics (CL) segment reported sales of 861.3 billion Korean won and an operating profit of 55.3 billion Korean won. These figures represent year-on-year increases of 12.1% and 7.8%, respectively. This indicates continued strength in CJ Logistics’ ability to manage and optimize supply chain solutions for its clients.
However, the global business segment experienced a decline in sales, dropping by 6% to 1.033 trillion Korean won. Operating profit for this segment fell by 29% to 20.1 billion Korean won. CJ Logistics attributed this downturn to various factors but expressed confidence in future improvements. The company stated, “From the fourth quarter onward, performance is expected to improve due to stabilized customs duties, expansion of cross-border e-commerce (CBE) operations, and growth in overseas contract logistics businesses.”
Key Highlights from CJ Logistics’ Third Quarter Performance
- Overall Sales: 3.066 trillion Korean won
- Operating Profit: 147.9 billion Korean won
- Parcel Division Sales: 965 billion Korean won (+7.4% YoY)
- Parcel Division Operating Profit: 62.8 billion Korean won (+16.6% YoY)
- Contract Logistics Sales: 861.3 billion Korean won (+12.1% YoY)
- Contract Logistics Operating Profit: 55.3 billion Korean won (+7.8% YoY)
- Global Business Sales: 1.033 trillion Korean won (-6% YoY)
- Global Business Operating Profit: 20.1 billion Korean won (-29% YoY)