South Korean logistics giant CJ Logistics Corp. reported a 10.5% increase in operating profit to 530.7 billion won ($397 million) for 2023, driven by strong performance in its contract logistics business and international operations.
The company’s revenue rose 3% to 12.12 trillion won, with its global division showing the strongest growth at 5.4%. Contract logistics revenue climbed 4.6% to 2.99 trillion won as the company secured new business through its consulting services.
While the parcel delivery unit saw marginal revenue growth of 0.2% to 3.73 trillion won despite economic headwinds, its operating profit declined slightly to 238.8 billion won.
The company’s overseas expansion strategy appears to be paying off, particularly in key markets like the United States and India, where contract logistics operations continued to expand. The global division’s operating profit increased 11.3% to 86.2 billion won, supported by growth in forwarding services.
CJ Logistics announced a dividend of 800 won per common share for fiscal 2023.
The results highlight the company’s shift toward higher-margin contract logistics and international operations while its domestic parcel delivery business faces profitability challenges in a competitive market.
