- CJ OliveNetworks, business profit increased by 45.3% in 2023 compared to the previous year through a substantial growth

- Qualitative growth through reorganization of business portfolio and strengthening of external business competitiveness

- Diversified business by entering new areas such as winning a contract for120 billion won worth of smart factory project, expanding smart space new growth businesses such as VFX studios, and public projects

CJ OliveNetworks (CEO Yoo In-sang), a comprehensive IT service company, makes a leap as an innovative company with the industry's top DX capabilities and productivity by significantly improving profitability through substantial management.

CJ OliveNetworks announced on the 26^th that it recorded its highest performance on an annual basis in 2023, with sales of KRW 676.5 billion and operating profit of KRW 51 billion, up 1.7% and 45.3%, respectively, from the previous year.

Sales grew slightly, and profitability indicators such as business profit improved significantly. The operating profit ratio, which recorded 5.3% in 2022, increased by 2.2%p compared to the previous year and reached 7.5% in 2023.

CJ OliveNetworks achieved qualitative growth by strengthening the competitiveness of external business along with sound management such as the reorganization of business portfolio and winning a contract for profitable projects amid difficult market environments.

Since taking office in July of last year, CEO Yoo In-sang of CJ OliveNetworks has selected ▲leading Group DX (AI, big data, cloud, Global Next ERP), ▲strengthening external business competitiveness, ▲evolving CJ ONE Super App, and  ▲smart space as four major strategic tasks. The company is working to improve its structure to strengthen its profitability and secure new growth engines for the future.

CEO Yoo has established a mid- to long-term goal of becoming an innovative company with the industry's top DX capabilities and productivity and achieving unparalleled first place among CJ Group's major affiliate companies, and realizing global goals.

Based on its business experience in connection with CJ CheilJedang and CJ Korea Express, CJ OliveNetworks won a contract for a smart factory external business worth KRW 120 billion, the largest since the company was founded this year, and in January of this year, it won a lawsuit for restitution for unfair enrichment worth KRW 25 billion in the public IT business sector. Performance and profitability indicators are expected to continue to improve in the future, including winning the lawsuit for refund.

In particular, the proportion of external business sales increased by 4.4% from 24.3% in 2022 to 28.7% in 23, and external business sales in 2024 are expected to grow by 40% compared to the previous year, and external business is expected to continue to expand.

CJ ONE, Korea's leading membership service that has surpassed 30 million members, is shifting to a platform business structure, expanding its traffic-based advertising business and continuously strengthening benefits in customers' daily lives to become a lifestyle super app.

The smart space business will enter the fields of logistics centers, VFX studios, smart farms, and data centers, and in the long term, the company will pursue smart town and smart city projects from a data perspective.

CJ OliveNetworks achieved KRW 740 billion in sales and KRW 56 billion in operating profit in 2024 and also set challenging goals of KRW 1 trillion in sales and KRW 1 trillion in corporate value in 2026. In addition, the company plan to lay the foundation for future growth through cash flow-centered management and engage in new business investment and M&A.

CJ OliveNetworks CEO Yoo In-sang, who is leading innovation, said, “Based on digital technology and data, we will definitely create a lifestyle innovation company that leads changes in space and daily life,” and added, “We will expand new growth businesses in the smart space field, such as VFX studios and smart factories, and diversify our business by entering new financial IT and public businesses.”