"CJ Freshway Achieves Balanced Growth in Ingredients and Catering, 3Q Operating Profit 35.2 Billion KRW, Up 115% YoY (Comprehensive)"

[Asia Economy Reporter Eunmo Koo] CJ Freshway recorded strong performance with three consecutive quarters of growth in both sales and operating profit, driven by balanced growth in food ingredient distribution and group meal service businesses.

CJ Freshway announced on the 9th that its consolidated operating profit for the third quarter of this year was 35.2 billion KRW, a 114.9% increase compared to the same period last year. Sales during the same period rose 33.5% to 751.7 billion KRW. Net profit was preliminarily estimated at 25.1 billion KRW, up 44.6%.

By business segment, sales from the food ingredient distribution business, targeting meal service and dining-out companies, increased 33.3% year-on-year to 570.2 billion KRW. Within this, the meal service channel’s differentiated product strategies, such as PB products and exclusive supply items, were cited as key factors for performance growth. The dining-out channel succeeded in renewing contracts with all dining franchise clients generating monthly sales of over 500 million KRW through the third quarter, establishing a stable portfolio centered on large customers. The dining solution business, which supports new brand launches and menu development for dining franchises, is also showing gradual progress.

The group meal service business recorded sales of 163.1 billion KRW, the highest quarterly figure ever, marking a 39.2% increase compared to the same period last year. Notably, the leisure and concession channels, including golf courses, water parks, and rest areas, grew approximately 71%. This is interpreted as a result of strengthening the leisure and concession business organizations to expand market share and enhance expertise. In the office and industrial channels, securing large clients with daily meal counts exceeding 1,000 was effective. New services such as strengthening menu operation capabilities, expanding the ready-to-eat takeout corner ‘SnackPick,’ and launching the mobile application ‘FreshMeal,’ which allows customers to check and order menus by store, are analyzed to have driven positive customer responses.

Manufacturing business sales slightly increased to 18.4 billion KRW compared to the same period last year. Subsidiaries specializing in sauces, Songlim Food, and J-Farms, which supplies pre-processed agricultural products, continue stable performance supported by the recovery of the dining market and the popularity of home meal replacements.

A CJ Freshway official stated, “Despite uncertain market conditions, we achieved continuous growth based on differentiated products and services and profitability-focused large client orders. We plan to accelerate the solution business that provides customized products and services to support client growth and strengthen our role as a ‘Food Business Partner’ during the remaining second half of the year.”