CJ Logistics' net profit up 60 percent in first quarter
CJ Logistics' net profit jumped more than 60 percent on year in the first quarter, though its operating profit declined almost 20 percent during the same period.
CJ Logistics reported 18.64 billion won ($16.6 million) in net profit in the January-March period, up 64.1 percent on year, according to its preliminary report released Friday. Its sales rose 7 percent to 2.69 trillion won during the same period.
The company’s operating profit, however, slid 17.3 percent on year to 48.1 billion won.
“Profitability declined due to the cost increase originating from hiring part timers for last mile sorting and bearing initial investment costs from the e-fulfillment business,” said the company in a statement. “Changes in accounting standards negatively impacted operating profit compared to the first quarter of 2020.”
CJ Logistics said that it is actively responding to the e-commerce market through the launch of its e-fulfilment division and strengthening ties with Naver, which also runs Naver Shopping.
CJ Logistics currently handles fulfilment services for 13 brands from Naver clients.
In response to the increased workforce to help delivery workers, CJ Logistics in April raised delivery fees for small packages by around 15 percent. The increase in price applies to corporate clients, like shopping mall operators.
Meanwhile, a labor union consisting of delivery workers on Friday announced a partial strike after an apartment complex in Gangdong District, eastern Seoul, banned a delivery truck from entering through the ground floor. The specific date on when the strike will begin hasn’t yet been decided.
BY JIN MIN-JI [email@example.com]