Dongwon Industries Hampered by Construction Delays... Q1 Operating Profit Down 6.2% YoY

Sales of 2.2419 trillion KRW... 1.0% decrease YoY
Growth in Fisheries and Food Sectors... Material and Construction Slump Amid Economic Downturn

Dongwon Industrial, the business holding company of Dongwon Group, recorded growth in its food sector due to strong tuna catches in the fisheries sector and increased demand for home dining. However, the materials and construction businesses underperformed due to the economic downturn, resulting in first-quarter results that fell short of expectations.

On the 10th, Dongwon Industrial announced through a public disclosure that its consolidated operating profit for the first quarter of this year was 110 billion KRW, a 6.2% decrease compared to the same period last year. Sales revenue decreased by 1.0% to 2.2419 trillion KRW.

Dongwon Industrial’s core tuna fishing and seafood sales business performed well, with standalone sales increasing by 17.1% year-on-year to 327.6 billion KRW. Operating profit for the same period rose 17.0% year-on-year to 74.9 billion KRW.

Dongwon F&B, a subsidiary in the food business sector, focused on selling cost-effective practical gift sets, home meal replacements (HMR), and dairy products in line with the home dining trend. Additionally, its subsidiary Dongwon Home Food saw a significant increase in demand for group meals and catering ingredients due to the downturn in the dining-out market. As a result, Dongwon F&B recorded first-quarter sales of 1.119 trillion KRW and operating profit of 49.9 billion KRW, representing increases of 3.5% and 14.8% respectively compared to the same period last year.

Dongwon Systems, the materials business subsidiary, saw sales and operating profit decline by 5.6% and 9.0% respectively to 309.1 billion KRW and 16.1 billion KRW, due to decreased aluminum exports to the Americas market. Dongwon Construction Industry also experienced a decline in sales due to reduced orders amid the construction market downturn.

A Dongwon Group official stated, “Although the challenging business environment continues, we will focus on solid management by achieving company-wide profitability improvements based on a balanced business portfolio.”

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