CJ (001040) Q2 2024 earnings summary

Executive summary

• Sales increased 3.8% year-over-year to KRW 10.7tn, driven by strong Retail & Logistics and improved Entertainment & Media performance.

• Operating profit rose 33.6% year-over-year to KRW 666.4bn, with significant margin improvements in Entertainment & Media and Bio segments.

• Net profit surged to KRW 308.5bn from KRW 34.8bn in the prior year quarter, reflecting improved profitability and operational efficiency.

• Report covers the 72nd fiscal period from January 1 to June 30, 2024, for a listed holding company with major subsidiaries in food, biotechnology, logistics, and media sectors.

• The group operates globally with 480 consolidated subsidiaries, including recent additions and disposals.

Financial highlights

• Consolidated H1 2024 revenue was ₩21,118.8 billion, up 5.2% year-over-year; operating profit reached ₩1,242.5 billion, a 50% increase from H1 2023.

• Net profit attributable to controlling interests was ₩260.2 billion, up 33.6% year-over-year.

• Gross profit increased 13% YoY to KRW 3,196.6bn; net profit attributable to owners rose to KRW 189.5bn.

• Notable segment OP growth: Retail & Logistics (+20.5% YoY), Entertainment & Media turned profitable, Bio OP up 54.6% YoY.

• Listed subsidiaries showed mixed results: CheilJedang OP +14.1% YoY, ENM turned profitable, CGV OP +36% YoY.

Outlook and guidance

• Continued focus on revitalizing core value 'ONLYONE', maximizing profitability, and enhancing financial soundness.

• The group is focusing on global expansion, digital transformation, and ESG initiatives.

• Ongoing investments in R&D, automation, and new business models in logistics and food.

• Commitment to stable or increasing dividends, maintaining payout ratio above 70% of separate net income (excluding one-off profits) through FY2025.