"CJ Freshway Sees Strong Q2 Performance with 'Reopening-Driven Expansion' in Dining Out and Catering Services (Comprehensive)"

Operating Profit of 34.6 Billion KRW in Q2... 82% Increase YoY

[Asia Economy Reporter Eunmo Koo] CJ Freshway posted strong second-quarter earnings as the dining-out market recovered following the easing of social distancing measures and catering transactions expanded. The company’s proactive response to external environmental changes by diversifying its private brand (PB) portfolio and planning differentiated products, thereby building a profitability-focused business portfolio, also had a positive impact.

CJ Freshway announced on the 10th through a public disclosure that its consolidated operating profit for the second quarter of this year was 34.6 billion KRW, a provisional figure representing an 81.7% increase compared to the same period last year. During the same period, sales rose 25.2% to 720.9 billion KRW, and net profit also increased by 84.0% to 24.2 billion KRW.

By segment, sales in the food ingredient distribution business reached 555.9 billion KRW, up 26.4% from the same period last year, solidifying its position as the industry leader. The ‘Meal & Business Solution’ strategy, which provides customized products and business solutions to customers, along with the growth of specialized PBs by channel such as the food distribution brand ‘It’s Well’, kids brand ‘Ainuri’, and care food brand ‘Healthy Nuri’, contributed to overall profitability improvement. Additionally, strategic products launched in collaboration with companies across various fields including food, content, and platforms supported sales growth.

The group catering business recorded sales of 147.6 billion KRW, growing 24.5% year-on-year. The catering market was revitalized due to reduced remote work and the resumption of in-person classes, and the company achieved results exceeding pre-pandemic levels by focusing on new orders and profitability enhancement. New services launched by proactively identifying diversified customer demands, such as operating a ready-meal takeout corner within catering outlets, also drove niche sales. Leisure and concession businesses including golf courses, water parks, and rest areas grew by 45.3% year-on-year as reopening effects took full effect.

Manufacturing business sales slightly increased to 17.4 billion KRW compared to the same period last year. This reflects stable operational performance of subsidiaries specializing in seasoning products such as sauces and dressings, Songlim Food, and J Farms, which supplies pre-processed agricultural products. CJ Freshway plans to strengthen its own growth engine by supporting product diversification and profitability improvement of its subsidiaries while expanding synergies with major business divisions.

CJ Freshway plans to continue its growth momentum in the second half of the year in line with the recovery trend in dining-out demand. In the long term, it will focus on strengthening fundamental competitiveness as the basis for business expansion and evolution. To this end, the company aims to evolve its business model by enhancing distribution competitiveness in strategic channels such as kids, schools, and leisure through the launch of exclusive B2B products and menu-type products, as well as the development of customized customer solutions.

In the group catering segment, CJ Freshway will strengthen operational strategies for specialized markets such as hospitals and concessions while securing orders from high-quality customers. As preparation for future markets, the company plans to enhance online service capabilities by advancing IT infrastructure for digital transformation and creating a database of catering menus.

Jung Sung-pil, CEO of CJ Freshway, stated, “In the first half of the year, we achieved good results by focusing on responding to market changes and strengthening fundamental competitiveness,” adding, “We will continue to evolve as a solution provider that can lead our customers’ success and expand the horizons of the food business industry.”