CJ Logistics reports 37 percent rise in second quarter net profit
CJ Logistics reported 49.4 billion won ($43 million) net profit in the second quarter, up 37 percent on year.
In a preliminary report released Friday, the company announced 2.7 trillion won in sales in the quarter, up 3.7 percent on year.
It was slightly under the market consensus of 2.8 trillion won for second quarter sales.
CJ Logistics, the largest delivery firm in Korea, said the rise in parcel delivery prices and the expansion of its fulfillment center business contributed to the sales growth.
The sale of Rokin Logistics, a Shanghai subsidiary, also helped net profit.
“The war amongst retailers to provide competitive delivery service is expected to increase the valuation of the company, which is in the lead of the fulfillment and logistics business,” said Yang Ji-hwan, an analyst at Daishin Securities, in a report last month.
Kim Pyeong-mo, an analyst at DB Financial Investment, said the rise in parcel delivery prices could offset the recent increase in the labor costs for delivery workers.
CJ Logistics said it will focus on increasing profitability and reorganizing its business structure in strategic locations, including China, United States and Vietnam.
The company runs businesses in 40 countries.
BY JIN MIN-JI [email@example.com]