Daedong Reports Q1 Sales of 377.7 Billion Won, Down 2.4% Year-on-Year

Operating Profit Reaches 6 Billion Won
Accelerating Transition to AI-Based Business Model

Daedong announced on May 18 that its consolidated sales in the first quarter of this year reached 377.7 billion won, with an operating profit of 6 billion won. Sales decreased by 2.4% compared to the same period last year. Operating profit declined due to the contraction of the global agricultural machinery market, increased tariff burdens in the United States, and expanded investments in future initiatives focused on artificial intelligence (AI) and robotics.

In the first quarter of this year, the global agricultural machinery market experienced an overall decline in demand, influenced by high interest rates and an economic slowdown. In particular, the North American market saw delayed sales recovery as farmers' willingness to purchase weakened and financial purchase approval rates fell. Similarly, the European market’s growth slowed due to the economic downturn.

Despite these market conditions, Daedong is accelerating its transition into an 'AI Agricultural Operations Platform' company, connecting AI tractors, agricultural robots, precision agriculture, and smart farming under the 'Agricultural Physical AI' strategy. In the first quarter, Daedong strengthened its sales foundation by holding nationwide demonstration events for its AI-based autonomous tractors and secured a 254.6 billion won national agricultural AX platform project.

Daedong AI Tractor

In the North American market, Daedong is aiming to secure 100 new dealers this year, focusing on both quantitative growth and qualitative growth by strengthening its strategy around high-performing, premium dealers. The company has already achieved its first-quarter goal and expects to secure at least 50 excellent dealers by the end of the first half. In Northern Europe, Daedong is working to enhance its market competitiveness through the development of new channels and by expanding its direct sales capabilities in Germany.

Starting in the second quarter, Daedong plans to focus on improving performance by targeting the North American peak season, expanding AI tractor sales, and pursuing cost innovation initiatives. In particular, the company aims to sell up to 300 AI tractors this year, while expanding package sales based on precision agriculture and transport robots. Daedong has set a goal of achieving consolidated annual sales of 1.65 trillion won this year, an increase of about 11% year-on-year, as well as maintaining at least 600 dealers each in North America and Europe.

Daedong CEO Won Youhyun stated, "This year marks an important period as Daedong transitions into a future agricultural platform company based on agricultural physical AI," adding, "We will strengthen our competitiveness in future businesses centered on AI tractors, precision agriculture, and smart farming, and secure a foundation for sustainable growth by expanding our global channels."

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