Dongwon Industries’ operating profit in the third quarter was 149.7 billion won… 1.1% increase in B2B/export growth (comprehensive)

Sales increased 6.6% to 2.756 trillion won... Cumulative operating profit for the first to third quarters: 447.3 billion won

(Seoul = Yonhap News) Reporter Kim Se-rin = Dongwon Industrial [006040], the business holding company of Dongwon Group, announced on the 10th that its operating profit in the third quarter of this year on a consolidated basis was provisionally calculated to be 149.7 billion won, an increase of 1.1% from the same period last year.

Sales amounted to 2.756 trillion won, an increase of 6.6% compared to the same period last year.

Cumulative sales in the first to third quarters of this year amounted to KRW 7.858 trillion, an 8.2% increase over the same period last year, and operating profit increased 10.0% to KRW 447.3 billion.

The profitability of the business-to-consumer (B2C) food business deteriorated due to rising costs due to high exchange rates and intensifying competition between distribution channels, but the company explained that its performance was supported by securing new customers and expanding exports in the business-to-business (B2B) business.

Dongwon F&B, a food affiliate, saw a slight increase in sales in the first to third quarters of this year, thanks to increased exports and online sales.

However, operating profit decreased significantly due to rising raw tuna prices, cost burden due to high exchange rates, and intensifying promotional competition in distribution channels.

Dongwon Home Food, a food ingredients distribution affiliate, increased both sales and operating profit in all business sectors, including food ingredients, meal service, seasoned foods, and livestock product distribution.

Dongwon Systems [014820], a packaging materials affiliate, improved its performance thanks to the expansion of exports of high value-added products such as eco-friendly packaging materials and the growth of overseas subsidiaries.

Cumulative sales in the first to third quarters of this year amounted to KRW 1.1431 trillion, an increase of 7.9% compared to the same period last year, and operating profit increased by 16.7% to KRW 68.4 billion.

Dongwon Loex, a logistics affiliate, also recorded double-digit growth rates in both sales and operating profit by securing new customers in the industrial and consumer goods sectors despite a decrease in global cargo volume.

Dongwon Loex plans to strengthen its high value-added logistics business, including specialized logistics such as hazardous chemicals and cold chain storage and transportation, in the fourth quarter.

An official from Dongwon Group said, "Despite difficult business environments such as high exchange rates and rising costs, the expansion of sales channels and export growth in B2B business supported the group's performance. We will continue to focus on profitability while continuing to invest in discovering new growth engines."