(LEAD) CJ Logistics Q3 net falls 25.5 pct on higher costs

CJ Logistics, a leading logistics firm in South Korea, reported a 25.5% decrease in its third-quarter net profit, attributed to higher operating costs. The profit for the quarter ended on September 30 was 54.7 billion won, down from 73.4 billion won in the same period last year. The decline was primarily due to prolonged tensions in the Middle East, increased investment in facilities, and a reduced number of working days during the Chuseok holiday.

The Chuseok holiday, a traditional Korean harvest festival, occurred in the third quarter of this year, compared to the fourth quarter of the previous year. Operating profit also fell by 25.3% to 110.5 billion won in the quarter, down from 147.9 billion won a year earlier. However, total sales grew by 9.5% to 3.35 trillion won, driven by the success of CJ Logistics' O-NE daily delivery service and contract logistics division.

The O-NE service, introduced in January 2025, provides seven-day-a-week deliveries, including on public holidays, aiming to improve the company's competitiveness against e-commerce giant Coupang Inc. From January to September, net income fell by 25% to 129.38 billion won, while operating profit decreased by 12.7% to 304.22 billion won, despite a 9.3% increase in sales to 9.95 trillion won.