Busy CJ Logistics grows revenue by a quarter

After expanding via overseas acquisitions, CJ Logistics produced year-over-year revenue growth of 25.7% in the third quarter of 2017. Its total sales were KRW* 1,873bn. Operating profit was up 3.8% at KRW 62.6bn, and net profit grew from KRW 0.6bn to KRW10.8bn.

With new acquired companies CJ ICM (IBRAKOM), Century, CJ Rokin, CJ Darcl and CK Speedex, the company managed 59.8% growth in revenues in its global segment to KRW 722.1bn. It managed a 50.7% jump in gross profit to KRW 78.5bn. Gross profit margin was down slightly at 10.9%. Its global segment now represents the largest part of its business by sales.

Its second largest segment, contract logistics, produced revenues of KRW 620.1bn, up 4.8%. Its gross profit fell 2.1% and as a result, its margins fell 0.8 percentage points to 11.4%. The company said its warehousing & distribution grew thanks to higher sales in retail & consumer goods. Its stevedoring profitability worsened due to a decrease in steel and grain volumes.

Finally, the parcels segment produced 18.8% sales growth to give it revenues of KRW 531.0bn. Its gross profit increased by 6.5%, but again, its margins fell back. Its year-to-date parcel volumes are up 18.2%.

Source: CJ Logistics

*KRW 1,328.69 = € /KRW 1,131.22 = $