Dongwon Industries Reports 17.1% Increase in Q1 Operating Profit Driven by Packaging and Logistics Growth

Despite facing the dual challenges of rising raw material prices and high exchange rates, Dongwon Group demonstrated growth in the first quarter. The B2B sector and logistics and construction subsidiaries filled the gap left by the seafood and food divisions, boosting the group's overall performance.
 
Dongwon Industries, the holding company of Dongwon Group, announced on May 8 that its consolidated revenue for the first quarter reached 2.53 trillion won, a 9.1% increase from the previous year, while operating profit rose 17.1% to 146.2 billion won.
 
Performance varied among subsidiaries. Dongwon Industries' standalone revenue from the seafood division fell 7.8% to 295.8 billion won, with operating profit plummeting 35.7% to 66.6 billion won.
 
Dongwon F&B, a food subsidiary, saw slight revenue growth due to the rise of online sales. However, operating profit declined by over 6% due to cost pressures from high exchange rates, unstable raw material supply, and intensified competition in offline sales.
 
Conversely, the B2B and non-food subsidiaries served as a backbone for the group's performance. Dongwon Systems, a packaging and materials subsidiary, managed to perform well despite the burdens of high exchange rates and rising prices for naphtha and aluminum, thanks to increased exports of high-value products like flexible packaging and food cans.
 
Dongwon Systems reported consolidated revenue of 337.8 billion won and operating profit of 13 billion won, marking increases of 0.3% and 3.9%, respectively. Notably, demand for pet food and retort pouches surged in the North American market, and the company expanded its export reach to 30 countries by securing new clients in Asia and Africa. Exports in the materials sector grew by approximately 20% year-on-year.
 
Leveraging its technological expertise in the packaging business, Dongwon Systems is also investing in new ventures, including materials for secondary batteries and advanced films, to establish long-term growth drivers.
 
Dongwon Home Food, a food distribution company, experienced balanced growth across all business areas, including seasoning products, meal services, and meat distribution, leading to improved performance through the expansion of new clients.
 
Logistics subsidiary Dongwon Loex and construction subsidiary Dongwon Construction Industry also contributed to the group's profit improvement with double-digit growth in both revenue and operating profit.
 
A Dongwon Group official stated, "The challenging business environment continues with high exchange rates, unstable raw material supply, and a sluggish domestic market, increasing our burdens."
 
He added, "While the outlook for the second quarter remains bleak, we will focus on solid management based on our robust business portfolio spanning seafood, food, materials, and logistics."