CJ (001040) Q3 2024 earnings summary

Executive summary

• Sales reached 10.8tn KRW in 3Q24, up 2.1% year-over-year, driven by growth in Retail & Logistics and overseas Food & Foodservice sales.

• Consolidated revenue for the first nine months of 2024 was ₩31.96 trillion, a 4.2% increase year-over-year, with operating profit rising 30.9% to ₩1.92 trillion.

• Operating profit rose 5.9% to 674.8bn KRW in 3Q24, with improved profitability in Retail & Logistics and Bio segments.

• Net profit turned to a deficit of -295.2bn KRW in 3Q24 from 356.9bn KRW in 3Q23, mainly due to higher tax expenses.

• The group operates across four main segments: Food & Food Services, Biotechnology, Logistics & New Distribution, and Entertainment & Media.

Financial highlights

• Consolidated sales: 10,845.2bn KRW (+2.1% YoY) in 3Q24; operating profit: 674.8bn KRW (+5.9% YoY).

• Revenue: ₩31.96 trillion for 2024 Q3 YTD, up from ₩30.69 trillion in 2023 Q3 YTD.

• Operating profit: ₩1.92 trillion, up from ₩1.47 trillion year-over-year.

• Net income attributable to controlling interests: ₩93.1 billion, down from ₩194.8 billion year-over-year.

• Gross profit increased 4.3% YoY to 3,174.8bn KRW; gross margin: 29.3% for the period.

Outlook and guidance

• Focus on reinforcing core value, maximizing profitability, and financial stability.

• Continued commitment to shareholder returns with a stable or increasing dividend policy.

• Ongoing investment in R&D and sustainability, including plant-based foods and biodegradable plastics.

• Management expects continued growth in logistics and entertainment, with a focus on operational efficiency and global market penetration.