CJ (001040) Q2 2025 earnings summary

Executive summary

• Sales rose 4.1% year-over-year to 11.2tn KRW in 2Q25, while operating profit declined 6.6% to 618.8bn KRW and net income increased 19.2% to 363.3bn KRW.

• Revenue for the first half of 2025 reached ₩21.72 trillion, up 2.8% year-over-year, with operating income at ₩1.15 trillion, a 6.8% decrease from the prior year.

• Net income attributable to controlling interests was ₩233.5 billion, up from ₩94.3 billion in the previous year.

• Growth was driven by Olive Young's strong performance in both online and offline channels, Fifth Season's expanded deliveries, and robust logistics and food segment expansion.

• Domestic operating profit was pressured by weak consumer demand, but net income benefited from improved FX gains.

Financial highlights

• Revenue for 2Q25 reached 11,119.0bn KRW, up 4.1% year-over-year; operating profit was 618.8bn KRW, down 6.6%; net profit was 363.3bn KRW, up 19.2%.

• Gross margin for 2Q25 was 29.0%, down 0.9 percentage points year-over-year.

• SG&A expenses increased 2.8% year-over-year, representing 23.4% of sales.

• Non-operating losses narrowed significantly to -95.7bn KRW from -229.2bn KRW year-over-year.

• Basic EPS for H1 2025 was ₩6,962, compared to ₩2,808 in H1 2024.

Outlook and guidance

• Shareholder return policy targets maintaining or increasing DPS annually, with a payout ratio of 70% or more of separate FS-based net profit (excluding one-off profit) for FY2023–2025.

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

• Management expects continued growth in logistics and food, with biotechnology stabilizing after a period of margin pressure.