Winia Dimchae and Electronics, Q3 Performance 'Soars' Despite COVID-19

Winia Dimchae Reports Operating Profit of 10.6 Billion KRW in Q3, Up 215% YoY
Winia Electronics Achieves Operating Profit of 3.3 Billion KRW, Successfully Returning to Profit

[Asia Economy Reporter Ki-min Lee] Winia Dimchae and Winia Electronics, home appliance subsidiaries of Daewoo Winia Group, succeeded in improving their third-quarter performance despite the impact of the novel coronavirus disease (COVID-19).

Winia Dimchae announced on the 13th that it achieved consolidated sales of 596.5 billion KRW and operating profit of 10.6 billion KRW in the third quarter of this year. Sales increased by 22% and operating profit rose by 215% compared to the third quarter of last year.

Winia Dimchae explained that its flagship product, the kimchi refrigerator "Dimchae," led the performance improvement. As people spent more time at home due to COVID-19, household food consumption such as kimchi increased, resulting in a 23% rise in Dimchae sales compared to the same period last year. Winia Dimchae also believes that the government’s top-efficiency rebate policy influenced the increase in Dimchae purchases.

The significant sales growth of subsidiaries such as Winia Aid and Winia Dimchae’s Thailand branch also contributed positively to the performance improvement. Winia Aid expanded its scale by merging with Daewoo Electronics Service in the second half of last year, and the Thailand branch began full-scale production this year, generating sales. The merger synergy of Winia Aid and fixed cost reduction through local production also supported the improvement in operating profit.

Winia Electronics recorded sales of 260.6 billion KRW in the third quarter this year. The third-quarter operating profit was 3.3 billion KRW, achieving a turnaround to profitability and more than doubling compared to the same period last year. Despite the long-term suspension of overseas factories in China and Mexico due to the COVID-19 situation in its business structure with significant overseas production, small home appliances, which pursued differentiation, attracted market attention, resulting in a 24% increase in cumulative third-quarter sales.

Winia Dimchae expects to achieve the highest-ever performance this year due to increased sales of its main product Dimchae and increased production at the Thailand branch as the global pandemic declines. Winia Electronics also forecasts strong fourth-quarter performance with good sales of small home appliances and in Latin America, including Mexico, during Black Friday and Christmas.

A Winia Dimchae official said, "Despite the difficult times this year due to the ongoing impact of COVID-19 since the beginning of the year, both companies achieved meaningful growth. Since the acquisition of Winia Electronics by the group, the cooperation system between the two home appliance companies has been established, and we expect synergy to be further demonstrated. We will achieve a leap forward in performance through innovative management and technology development to overcome the crisis."

This content was produced with the assistance of AI translation services.