Dongwon Group reported growth in both revenue and operating profit through the third quarter of this year. Despite declining profitability in its food business due to rising tuna costs, the company's performance was bolstered by new orders and export expansion in its business-to-business (B2B) sectors, including food distribution, packaging, and logistics.
Dongwon Industries, the holding company of Dongwon Group, announced on November 10 that its cumulative consolidated operating profit for the third quarter reached 447.3 billion won, a 10.0% increase compared to the same period last year. Revenue during the same period rose to 7.858 trillion won, up 8.2%.
For the third quarter alone, operating profit was 149.7 billion won, a 1.1% increase from the previous year, while revenue grew by 6.6% to 2.756 trillion won.
Performance varied across business segments, with the business-to-consumer (B2C) food sector and B2B operations showing mixed results. Dongwon F&B saw a slight increase in cumulative revenue for the third quarter due to growth in overseas exports and online sales, but its operating profit significantly declined. This was attributed to rising raw material costs from increased tuna prices and high exchange rates, along with intensified promotional competition in both online and offline distribution channels.
In contrast, Dongwon Home Food, a subsidiary focused on food distribution, experienced growth in both revenue and operating profit across all its business areas, including food service, seasoning products, and meat distribution. The growth in the food service sector was driven by new large contracts for supplying food to senior citizens and military services. The meat distribution segment also improved due to increased sales of imported meat driven by holiday demand and the expansion of online and retail distribution channels.
Dongwon Systems, a packaging subsidiary, continued its growth trend, reporting a cumulative operating profit of 68.4 billion won for the third quarter, a 16.7% increase from the previous year, with revenue rising 7.9% to 1.1431 trillion won. The expansion of exports of high-value products, such as eco-friendly packaging, and improved performance from overseas subsidiaries contributed to this growth.
Dongwon Logistics also recorded double-digit growth in both revenue and operating profit, securing new clients in the industrial and consumer goods sectors despite a global decline in cargo volume. The company plans to strengthen its specialized logistics for hazardous materials and enhance its cold chain storage and transportation services in the fourth quarter.
A Dongwon Group official stated, "Despite the challenging business environment marked by high exchange rates and rising costs, the expansion of B2B sales channels and export growth supported the group's performance. We will continue to focus on profitability while investing in the discovery of new growth engines."
* This article has been translated by AI.
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