1. What Happened? CJ Freshway’s Q2 2025 Earnings Breakdown

CJ Freshway reported KRW 883.3 billion in revenue, KRW 27.4 billion in operating profit, and KRW 15 billion in net profit for Q2 2025. Although revenue grew by 10.6% quarter-over-quarter, it fell short of market consensus. Operating and net income also missed expectations, raising concerns about the company’s profitability.

2. Why Did This Happen? Analyzing the Earnings Miss

The earnings miss is primarily attributed to rising raw material and labor costs, coupled with increased investment in new businesses. While the food service segment’s return to profitability is a positive sign, the slower profit growth compared to revenue growth remains a key challenge.

3. What’s Next? Outlook and Investment Strategies

In the short term, the disappointing earnings are likely to put downward pressure on the stock price. The company’s ability to improve profitability will be crucial for its mid-to-long-term performance. Cost management, improving financial structure, and demonstrating tangible growth in new businesses are key factors to watch. Exchange rate and interest rate volatility also pose ongoing risks.

4. What Should Investors Do? Action Plan

  • Short-term investors: Consider a wait-and-see approach or implement risk management strategies given the earnings uncertainty.
  • Long-term investors: Continuously monitor profitability improvements, financial restructuring efforts, and growth in new businesses, adjusting investment strategies based on the company’s fundamental changes.