CJ Logistics (000120) Q3 2024 earnings summary

Executive summary

• 3Q24 sales reached 2.98 trillion KRW, up 1.3% year-over-year, with operating profit at 141.6 billion KRW (+13.5% YoY) and net income at 60.0 billion KRW (+3.9% YoY).

• Growth driven by new W&D orders, overseas market expansion, and forwarding business; profit supported by tech-based productivity and efficiency.

• Parcel-E-commerce sales remained flat YoY, with slight profit decline; CL segment saw strong sales and profit growth; Global segment posted robust gains, especially in the US and India.

• E&C segment experienced temporary sales decline due to project completions, but order backlog exceeds 1 trillion KRW, supporting future growth.

Financial highlights

• Sales: 2,975.8 billion KRW (+1.3% YoY); Operating profit: 141.6 billion KRW (+13.5% YoY); Net income: 60.0 billion KRW (+3.9% YoY).

• Operating margin improved to 4.8% from 4.2% YoY; net margin at 2.02% (+0.06%p YoY).

• Gross profit increased 4.2% YoY to 348.3 billion KRW.

• Despite macroeconomic slowdown and one-off costs, profit growth was maintained.

Outlook and guidance

• Expansion of 'Productivity Innovation Projects' to drive further cost efficiency.

• Launch of 7-day delivery service to strengthen market leadership in Parcel-E-commerce.

• E&C expects sales and profit growth as order backlog exceeds 1 trillion KRW.