Seoul: CJ Logistics Corp., South Korea's leading logistics company, announced that its net profit for the fourth quarter fell by 6 percent compared to the previous year. This decrease was attributed to provisions that were set aside for anticipated future expenses.
According to Yonhap News Agency, the company reported a net profit of 86.2 billion won (US$59.1 million) for the three months ending in December, down from 91.6 billion won during the same period in 2024. Despite the decline, the results surpassed market expectations, as analysts had projected an average net profit of 83.2 billion won based on a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
A spokesperson for CJ Logistics noted that the provisions earmarked for potential future spending or losses had impacted the company's quarterly earnings. However, there was a positive aspect to the financial results, with the operating profit rising by 3.4 percent year-on-year to reach 159.6 billion won in the fourth quarter. Additionally, sales saw a slight increase of 0.5 percent, totaling 3.17 trillion won.
The company credited the improvement in operating profit to sustained contract acquisitions in its contract logistics (CL) division and the enhanced performance of its O-NE delivery service, which was launched in January of the previous year. This service provides seven-day-a-week deliveries, including on public holidays.
For the entire year, CJ Logistics experienced a 3.6 percent decline in net profit, amounting to 258.74 billion won, down from 268.32 billion won the previous year. Operating profit for the year decreased by 4.3 percent to 508.08 billion won, while sales increased by 1.4 percent, reaching 12.28 trillion won. The reduction in operating profit for the full year was attributed to the initial costs associated with stabilizing the O-NE service during the first half of the year, as explained by the spokesperson.