[Edaily Reporter Kim Ji-woo ] CJ Freshway Corporation(051500)saw its profitability decline in the second quarter of this year despite revenue growth, due to investments aimed at expanding its online retail business.

CJ Freshway Corporation announced on the 6th that its consolidated revenue for the second quarter of this year reached 923.2 billion won, a 4.5% increase compared to the same period last year. Operating profit for the same period fell 14.2% to 23.5 billion won. Net income decreased 32.3% year-over-year to 10.1 billion won.

Revenue from the foodservice ingredients and food raw materials distribution business totaled 418.4 billion won. Online business revenue drove this growth, rising 51% year-over-year. The growth of “Sikbom,” a business-to-business (B2B) food ingredients platform in which the company acquired a stake last March, also contributed to the results.

The number of integrated delivery products—combining CJ Freshway Corporation’s logistics network with the Sikbom platform—more than doubled compared to the same period last year. Consequently, Sikbom’s cumulative gross merchandise value (GMV) for the second quarter reached 151.3 billion won, a 25.8% increase year-over-year.

The food ingredients segment and the franchise channel also continued their growth momentum. As a result of identifying potential customers through data-driven strategies and expanding new orders, revenue in the food ingredients segment increased by 14.3% year-over-year. Revenue from the franchise channel also rose by 11%.

Revenue from the food service business totaled 498.3 billion won. Sales in food service ingredient distribution expanded, driven primarily by the kids’ and school meal channels, while institutional food service revenue increased by 4.9% year-over-year.

The volume of new contracts in the institutional food service sector rose by 43.7% compared to the same period last year. CJ Freshway Corporation secured a series of new business sites, including military food service contracts such as the Army Training Center and the 1st Marine Division. Sales from the concession channel—which operates food and beverage outlets in high-traffic facilities such as airports, rest areas, and hospitals—also grew by 21% year-over-year.

Lim Seong-cheol, Chief Financial Officer (CFO) of CJ Freshway Corporation, stated, “We will position our online platform business, centered on Sikbom, as a core pillar of future growth, providing optimized services to both customers and vendors while leading the digital ecosystem of the food distribution market.” He added, “We will build a foundation for sustainable growth through planned investments aimed at strengthening our fundamental competitiveness and creating a decisive competitive edge in the food distribution and catering businesses.”