Dongwon Industries Posts 515.6 Billion Won in Operating Profit Last Year, Up 2.9% Year-on-Year

Balanced growth across key business segments including food, materials, and logistics

Dongwon Industries, the business holding company of Dongwon Group, announced on the 11th that, on a consolidated basis, last year's revenue was tentatively tallied at 9.5837 trillion won, up 7.2% from a year earlier. Operating profit for the same period came in at 515.6 billion won, an increase of 2.9%.

On a separate basis, revenue was 1.1062 trillion won, up 2.5% year-on-year, and operating profit was 155.7 billion won, up 21.1%. The improvement in profitability outpaced the growth rate of revenue, which is analyzed as evidence that the company’s business structure has strengthened.

Provided by Dongwon Group.

Dongwon F&B, a food affiliate, saw its performance driven by expanded global exports. Exports of Dongwon Tuna to the United States, supported by model Jin of BTS, increased by about 30%, and major product categories such as home meal replacement (HMR), pet food, and beverages also grew across the board, pushing total exports up by more than 15%. In the domestic market, revenue from seasoned sauces (tuna extract) rose by more than 40%, and online channels also grew by more than 10%, delivering well-balanced results across all segments.

Dongwon Home Food posted growth in both revenue and operating profit across all of its business segments, including seasoned foods, food ingredients, food service, and livestock distribution. Food ingredients and livestock distribution showed double-digit growth on the back of an expanded base of new customers, while the seasoning business continued a stable growth trend in business-to-consumer (B2C) channels, supported by demand from business-to-business (B2B) customers.

Dongwon Systems, a packaging and materials affiliate, saw increased annual exports of packaging materials drive revenue growth. In particular, exports of high value-added products such as pet food and retort pouches contributed to the improvement in results. However, operating profit declined due to rising raw material prices, including aluminum, the strong won exchange rate, and the impact of a slowdown in downstream industries. On a consolidated basis, revenue increased 2.9% to 1.3729 trillion won, while operating profit fell 28% to 66.2 billion won.

The logistics and construction segments also posted growth. The logistics business, centered on Dongwon Loex, increased revenue and boosted operating profit by more than 25% thanks to new volume wins and improved transport efficiency. Dongwon Construction Industries won new projects such as logistics centers in Haeundae and Anseong, lifting revenue by more than 40%, and, through selective order-taking and cost-reduction strategies, expanded operating profit by more than threefold.

A Dongwon Group official said, "Following last year, the business environment is expected to remain challenging this year due to the strong won and rising raw material prices," adding, "To overcome the situation, we will strengthen our global expansion across all business groups while striving to achieve tangible results in new businesses such as smart ports and secondary battery materials."

Meanwhile, Dongwon Industries' board of directors on the same day approved a year-end dividend of 600 won per share. This is higher than the interim dividend of 550 won per share implemented for the first time last year. The company also decided to cancel all 7,137 treasury shares generated through a comprehensive share swap and bonus issue, further strengthening its shareholder return policy.

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