(LEAD) CJ Logistics Q2 net falls 36.8 pct on higher costs

CJ Logistics Corp., a prominent logistics company in South Korea, announced on Tuesday that its second-quarter net profit fell by 36.8% compared to the same period last year. The decline in profit was attributed to higher costs, primarily driven by rising oil prices due to the ongoing conflict between the United States and Iran in the Middle East.

The company's net profit for the quarter, which ended in June, amounted to 36.8 billion won (approximately US$25.9 million), down from 58.2 billion won in the previous year's corresponding period. This decline in net profit was accompanied by a decrease in operating profits, which fell 11.9% to 101.6 billion won, from 115.2 billion won a year earlier.

Despite the lower net profit and operating margins, CJ Logistics saw a positive trend in its sales, which increased by 10.9% to reach 3.37 trillion won, up from 3.05 trillion won in the previous quarter. The growth in sales was primarily driven by the company's O-NE daily delivery service and the contract logistics division. This new service, launched in January 2025, provides seven-day-a-week deliveries, including on public holidays, aiming to compete more effectively with local leader Coupang Logistics Services, the logistics arm of e-commerce giant Coupang Inc.

In the first half of the year, the company's net income declined by 24.7% to 74.7 billion won, from 99.2 billion won a year earlier, while operating profit dropped 3.5% year-on-year to 193.6 billion won. Overall sales for the six-month period decreased by 9.2% to 6.59 trillion won, compared to the previous year.