"High Inflation Slows Dining Out" CJ Freshway Q2 Operating Profit 30.1 Billion KRW... Down 6.1% YoY

Q2 Sales of 811.3 Billion KRW, Operating Profit of 30.1 Billion KRW Recorded
Growth in Food Material Distribution and Group Catering, Profitability Declines Due to Economic Downturn

CJ Freshway achieved quantitative growth through the distribution of meal ingredients and the strong performance of its group meal service business, but operating profit slightly decreased due to high inflation, high interest rates, and a downturn in the dining-out market.

CJ Freshway announced on the 7th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 30.1 billion KRW, down 6.1% compared to the same period last year. During the same period, sales increased by 4.1% to 811.3 billion KRW.

By business segment, sales in the meal ingredient distribution business reached 595.9 billion KRW, with strong growth seen in lifecycle-customized private brands (PB) such as ▲ Ainuri (infants and toddlers) ▲ Ttuntun School (youth) ▲ Healthy Nuri (elderly).

In line with the aging society, sales of the Healthy Nuri business, which supplies meal ingredients to elderly welfare and nursing facilities, increased by 16% compared to the same period last year.

The dining-out solution business, which provides consulting services to dining establishments, has also entered a stabilization phase. In June, the casual Japanese restaurant 'Shoji,' which received integrated consulting for its dining brand, opened its doors.

Sales in the group meal service business recorded a quarterly high of 201.3 billion KRW through business diversification such as mobile meal services. The ready-to-eat takeout corner 'Snack Pick' expanded its locations, proving its brand competitiveness.

CJ Freshway is focusing on securing orders from general group meal channels such as industrial sites and offices amid the ongoing strike by resident doctors, while strengthening management systems to improve cost efficiency and profitability.

Sales in the manufacturing business reached 14.1 billion KRW. Fresh Plus, a manufacturing-specialized subsidiary, supplies sauces, dressings, and more to various food and dining businesses. Riding on the growth of the sauce market, it plans to secure new customers and accelerate the development of high value-added products such as customized items.

Gwak Kyung-min, Chief Financial Officer (CFO) of CJ Freshway, said, "Although we expect a challenging management environment due to domestic and international uncertainties, we will improve profitability through increasing market share in the dining-out ingredient market, strengthening competitiveness in group meal service orders, and stabilizing the manufacturing business."