CJ Logistics revenues grew by 11% in Q2 2019

CJ Logistics

CJ Logistics has announced its Q2 results for 2019 reporting sales of KRW*2534.8bn, an increase of 11.0% in comparison to Q2 2018. The company reported a gross profit of KRW*234.9bn, an increase of 12.8% year-on-year. Operating profit grew by 25.7%, totalling KRW71.8bn. This led to a net profit increase of 158.6% year-on-year, to KWR17.4bn.

The company’s Global division reported sales of KRW1,080.6bn, an increase of 25.4% year-on-year. Gross profit increased by 23.8% to KRW93.2bn. Revenues increased partly due to securing MNC clients who established orders in China and Vietnam, and the expansion of value-added business such as GDC.

The Parcel division’s sales saw an increase of 9.6% to KWR642.6bn. The company reported a gross profit of KRW64.2bn, an increase of also 9.6% in comparison to Q2 2018. The report states that new pricing has been applied as of June 2019 and the implementation of data driven analysis support systems is planned in H2.

The Contract Logistics division reported a sales increase of 1.1% to KWR648.0bn. Gross profit grew faster at a 5.0% growth rate to KWR63.0bn. Removing low margin clients, ASP hike, and delivery structure improvement proceeded to offset increased cost burden. Furthermore, margin increased thanks to normalized operation of self-propelled barges despite sluggish port business as a result of continued economic downturn.

Source: CJ Logistics

*€ = KRW1300 / $ = KRW1153