CJ OliveNetworks Reports 45.3% Increase in Operating Profit Last Year... "Leap to a Lifestyle Innovation Company"

CJ OliveNetworks announced on the 26th that it plans to significantly improve profitability through sound management and leap forward as an innovative company. In particular, last year's operating profit increased by more than 45% compared to the previous year.

According to CJ OliveNetworks, last year's sales amounted to 676.5 billion KRW, up 1.7% from the previous year, and operating profit was 51 billion KRW, up 45.3%. This is the highest performance on an annual basis.

Sales grew slightly, while profitability indicators such as operating profit improved significantly. The operating profit margin, which was 5.3% in 2022, rose by 2.2 percentage points from the previous year to 7.5% last year.

CJ OliveNetworks achieved growth through sound management by reorganizing its business portfolio and securing profitability-centered projects despite the challenging market environment. It also strengthened its competitiveness in external business.

Since taking office in July last year, CEO Yoo In-sang of CJ OliveNetworks has selected four strategic tasks: leading the Group's DX (Device Experience) (including artificial intelligence (AI), big data, cloud, etc.), strengthening external business competitiveness, evolving the CJ ONE super app, and smart space. He is working on improving the company’s profitability and securing future new growth engines.

As a result, based on business experience linked with CJ CheilJedang and CJ Logistics, CJ OliveNetworks secured an external smart factory project worth around 120 billion KRW, the largest scale since the company's founding, earlier this year. Performance and profitability indicators are expected to continue improving, as evidenced by a January victory in a lawsuit demanding the return of unfair profits worth around 25 billion KRW in the public IT business sector.

The proportion of external business sales improved by 4.4 percentage points from 24.3% in 2022 to 28.7% last year, and external business sales are expected to grow by 40% this year compared to the previous year, indicating continuous expansion of external business.

Additionally, CJ ONE, Korea’s leading membership service with over 30 million members, is transitioning to a platform business structure to expand traffic-based advertising business and continuously enhance benefits in customers’ daily lives to become a lifestyle super app.

The smart space business is expanding into logistics centers, VFX studios, smart farms, and data centers, and in the long term, it plans to promote smart town and smart city projects from a data perspective.

CJ OliveNetworks has set ambitious goals of achieving 740 billion KRW in sales and 56 billion KRW in operating profit this year, and reaching 1 trillion KRW in sales and corporate value by 2026. It also plans to lay the foundation for future growth through cash flow-focused management and pursue new business investments and mergers and acquisitions (M&A).

CEO Yoo In-sang said, "We will definitely create a lifestyle innovation company that leads changes in space and daily life based on digital technology and data," adding, "We will expand new growth businesses in the smart space sector such as VFX studios and smart factories, and diversify our business by entering new fields such as financial IT and public projects."