Dongwon Group Reports 2.53 Trillion Won in Q1 Sales, Up 9.1% Year-on-Year

Fisheries and Food Struggle Amid Sluggish Domestic Demand
Packaging and Logistics B2B Orders Drive Solid Performance

Dongwon Industries, the holding company of Dongwon Group, reported consolidated sales of 2.53 trillion won for the first quarter of this year, a 9.1% increase compared to the same period last year.

Dongwon Group announced on May 8 that its operating profit for the first quarter was 146.2 billion won, up 17.1% year-on-year, and net profit for the period increased by 51% to 112.9 billion won.

Although the fisheries and food divisions struggled due to persistently high exchange rates, unstable raw material supply, and sluggish domestic demand, the group was able to achieve solid results thanks to strengthened exports and increased new orders in the B2B sector, including packaging and logistics subsidiaries.

On a standalone basis, Dongwon Industries posted annual sales of 295.8 billion won last year, down 7.8% from the previous year, while operating profit fell 35.7% to 66.6 billion won. Dongwon F&B saw operating profit drop by more than 6% year-on-year due to increased cost burdens and intensified offline competition.

In contrast, Dongwon Home Food, a B2B food distribution company, achieved balanced growth across all businesses, including seasoned foods, food ingredients, food service, and meat distribution. The food ingredient and meat distribution divisions were driven by the expansion of new clients, and the seasoning business grew on the back of B2B demand.

Dongwon Systems, a packaging and materials subsidiary, achieved sales growth through the expansion of exports focused on high value-added products such as flexible packaging and food cans, despite external uncertainties including high exchange rates and rising global raw material prices. On a consolidated basis, first-quarter sales increased by 0.3% to 337.8 billion won, and operating profit grew by 3.9% to 13 billion won.

The logistics subsidiary Dongwon Loex and the construction subsidiary Dongwon Construction Industry both recorded double-digit increases in sales and operating profit. Sales rose through the acquisition of new volumes and construction orders, and operating profit improved as a result of streamlined transportation and selective orders focused on high-quality project sites.

A Dongwon Group representative stated, "The challenging business environment, including high exchange rates, unstable raw material supply, and a depressed domestic market, continues to intensify the burden," adding, "Although the business environment is not expected to improve in the upcoming second quarter, we will focus on sound management based on our solid business portfolio spanning fisheries, food, materials, and logistics."

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