CJ (001040) Q1 2026 earnings summary

Executive summary

• Consolidated sales rose 8.0% year-over-year to 11,451.2bn KRW in Q1 2026, with operating profit at 460.7bn KRW and net income at 174.3bn KRW, driven by reduced interest expenses and improved FX gains.

• Major business segments include Food & Food Service, Biotechnology, New Distribution (Logistics & Retail), and Entertainment & Media.

• Olive Young and Logistics segments posted strong sales growth; ENM's Film & Drama sales improved.

Financial highlights

• Revenue: 11,451.2bn KRW (+8.0% YoY); Operating Profit: 460.7bn KRW; Net Income: 174.3bn KRW (+31.4% YoY).

• Gross margin decreased by 1.1 percentage points YoY to 27.8%.

• SG&A expenses increased 7.6% YoY; operating margin fell to 4.0% from 5.0%.

• EBITDA for Q1 2026 was 1,424.0bn KRW.

• Basic EPS for Q1 2026 was 2,256 KRW.

Outlook and guidance

• Olive Young to accelerate global expansion and domestic user acquisition in 2Q26, including US offline store launches and new loyalty program.

• The group plans to accelerate global expansion in K-Food and logistics, invest in digital transformation, and strengthen its entertainment content pipeline.

• Continued focus on cost control and portfolio optimization amid inflation and global economic uncertainty.

• New dividend policy for 2026 to be disclosed later.