Daedong Surpasses 1 Trillion Won in Q3 Sales... Approaching Last Year's Annual Performance

Strong Performance Amid Economic Uncertainty... Continued Growth in Scale and Quality

Daedong, Q3 Performance Status. [Graphic=Daedong]

[Asia Economy Reporter Kim Jong-hwa] Daedong announced on the 15th that its cumulative sales and operating profit for the third quarter on a consolidated basis increased by 27.3% and 40.6% year-on-year, reaching 1.1367 trillion KRW and 80.7 billion KRW respectively, achieving a record high of surpassing 1 trillion KRW in sales for the third quarter for the first time since its founding.

Last year, Daedong achieved consolidated sales of 1.1792 trillion KRW and operating profit of 38.2 billion KRW, opening the door to the '1 trillion club' for the first time since its establishment. In the third quarter of this year alone, it recorded performance close to last year's annual sales, achieving sales of 1 trillion KRW for two consecutive years and laying the foundation for a new quantum jump.

Daedong's consolidated market consensus forecast for this year is sales of 1.3007 trillion KRW and operating profit of 62.6 billion KRW, but it has already exceeded operating profit by 18.1 billion KRW in the third quarter. The cumulative sales and operating profit for the third quarter increased by 12.1% and 31.4% year-on-year to 734.2 billion KRW and 50.6 billion KRW respectively, steadily achieving both quantitative and qualitative growth as the group's parent company.

The agricultural machinery industry typically experiences a market contraction and sales decline in the second half of the year due to seasonal characteristics. Despite economic uncertainties such as the global economic downturn and rising raw material prices this year, agricultural machinery sales have increased evenly both domestically and internationally in the second half, continuing the growth trend from the first half, which recorded the highest ever performance. Additionally, favorable exchange rate effects contributed to the strong results. Daedong expects continued strong performance each quarter due to increased domestic and overseas product and service sales, maintaining the upward trend into the fourth quarter.

Domestically, despite the decrease in the agricultural population and farmland, the solid business foundation including product competitiveness, service capabilities, sales network, and brand power led to a 6.9% year-on-year increase in cumulative consolidated sales for the third quarter. Overseas, cumulative consolidated sales by country for the third quarter increased by 37.2% in North America, 9.8% in Europe, and 49.3% in other countries such as Oceania and Mexico, resulting in a total overseas sales growth of 40.5%.

Won Yoo-hyun, CEO of Daedong, said, "In the third quarter of this year, which marks the 75th anniversary of our founding, we achieved the meaningful milestone of 1 trillion KRW in sales, and the full-scale journey to become a leading company in future agriculture starts now." He added, "In a management environment with intensified uncertainties, we will continue solid growth by focusing on securing competitiveness in existing businesses and making strategic investments in future businesses."

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