CJ Logistics has announced its Q1 results for 2019 reporting a gross profit of KRW*204.9bn, an increase of 16.9% year-on-year (Q1 2018: KRW175.3bn). The company reported a 21.5% increase in sales in comparison to Q1 2018. However, CJ Logistics reported net profit of KRW12.8bn, a decrease of 63.2% in comparison to Q1 2018 (KRW34.8bn). Operating profit remained the same level as Q1 2018, totalling KRW45.3bn.
The company reported an increase of 27.3% in gross profit for the Global division. The division saw a significant increase in sales of 32.2%. Excluding the addition of the DSC subsidiary, growth in sales would have been 12.3%. However, the company has stated that a prolonged market slump caused slowdown in forwarding and project forwarding business.
The Parcel division’s sales saw an increase of 10.1%. However, the company reported a gross profit of KRW387bn, a decrease of 11.8% in comparison to Q1 2018 (KRW439bn). Despite efforts to improve operational efficiency and price increases, the division was unable to offset the decrease in profitability due to the minimum wage hike and safety investments.
The Contract Logistics division saw gross profit fall to KRW600bn, an increase of 0.7% in comparison to Q1 2018. This decrease was primarily due to slowdown in economy as well as minimum wage hike. However, the division reported a 1.2% increase in sales.
Source: CJ Logistics
*€ = KRW1289.68 / $ = KRW1127.25
