CJ (001040) Q1 2025 earnings summary

Executive summary

• Consolidated sales/revenue rose 1.6% year-over-year to 10.6tn KRW (₩10,600.4 billion), with operating profit at 535.0bn KRW and net income attributable to owners at 69.6bn KRW, driven by higher tourist sales at OliveYoung, strong overseas food sales, and increased logistics orders.

• All major business segments contributed to revenue, with logistics & new distribution leading at ₩4,357.0 billion, followed by food & food services at ₩3,663.0 billion.

• The group maintained a strong cash position, ending the quarter with ₩3,064.5 billion in cash and cash equivalents.

• Operating profit fell 7.2% year-over-year, and net income dropped 9.5%, mainly due to weak domestic demand and initial investments in the parcel business.

Financial highlights

• Gross profit increased 2.1% year-over-year to 3,066.8bn KRW, with gross margin at 28.9%.

• SG&A expenses rose 4.4% year-over-year, reducing operating margin by 0.5 percentage points to 5.0%.

• Net margin attributable to owners of the parent was 0.7%.

• Total assets reached ₩47,510.3 billion, and total equity was ₩17,722.1 billion.

• The group paid cash dividends totaling ₩100.7 billion in April 2025.

Outlook and guidance

• Inbound travelers expected to rise in Q2, supporting further growth in OliveYoung.

• Ongoing global expansion in food and bakery segments, with TLJ targeting 1,000 US locations and new dough plant completion by end of 2025.

• The group aims to accelerate global expansion in K-Food, logistics, and entertainment, focusing on premiumization and digital transformation.

• Continued investment in R&D and automation is expected to support growth and operational efficiency.

• No changes to dividend policy; commitment to stable or increasing dividends remains.