Feb 10 β€’ 06:20 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

CJ Logistics Achieves Record Performance in Q4 After Implementing 7-Day Delivery Service

CJ Logistics has reported record earnings in the fourth quarter of last year, attributed to the successful implementation of its 7-day delivery service despite a slight decline in annual operating profit due to expansion costs.

CJ Logistics, having launched its 7-day delivery service last year, reported its highest quarterly earnings ever in Q4, with revenue reaching 3.1771 trillion won and operating profit totaling 159.6 billion won. Compared to the same period last year, revenue saw a modest increase of 0.5% while operating profit rose by 3.4%, marking a significant achievement for the company. The substantial growth in the parcel and e-commerce segments can be attributed to the successful uptake of the new service 'Everyday One' combined with a rise in demand for early morning and same-day deliveries as well as improved performance in e-commerce fulfillment.

In terms of operational performance, despite the revenue growth of 4.8% in the parcel and e-commerce division, the segment experienced a decline in operating profit, falling by 11.2% to 61.8 billion won, which the company attributed to seasonal factors related to the timing of the Chuseok holiday. Meanwhile, the contract logistics division reported a 10.5% growth in revenue at 865.4 billion won, although it faced a 4.2% drop in operating profit to 47.7 billion won. Conversely, the global division showed resilience with revenues of 1.0812 trillion won and operating profit of 38.3 billion won, citing improvements in profitability through new contract acquisitions despite adverse customs and freight conditions.

On an annual basis, CJ Logistics recorded total sales of 12.2847 trillion won, a 1.4% rise compared to the previous year. This growth was driven by robust performance in the contract logistics sector and the beneficial impact of the 'Everyday One' service in the latter part of the year. However, the financial burden of introducing the 7-day delivery service and initial operational costs for third-party logistics clients led to a 4.3% decrease in operating profit, which amounted to 508.1 billion won.

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