Cumulative sales reach 7.8 trillion won, up 8.2%

B2B orders, exports drive affiliate growth

Dongwon Group's headquarters building [Provided by Dongwon Group]
Dongwon Group's headquarters building [Provided by Dongwon Group]

Dongwon Industries, the operating holding company of Dongwon Group, said Tuesday its cumulative operating profit through the third quarter reached 447.3 billion won ($330 million) on a consolidated basis, up 10.0 percent from the same period a year earlier. Sales over the same period rose 8.2 percent to 7.86 trillion won.

Third-quarter sales came in at a preliminary 2.76 trillion won, up 6.6 percent year on year, while operating profit edged up 1.1 percent to 149.7 billion won. Profitability in the business-to-consumer food segment came under pressure from higher costs driven by the weak won and intensifying competition across online and offline channels, but the group offset those headwinds by expanding orders and exports in its B2B businesses — food ingredient distribution, packaging materials and logistics.

Dongwon F&B, the group's B2C food affiliate, posted a modest increase in cumulative third-quarter sales on the back of overseas and online growth. However, operating profit plunged as rising tuna prices, a weak won and fiercer promotional competition across retail channels weighed on margins. Dongwon Home Food, the group's B2B food ingredient distribution arm, grew both sales and operating profit, with every business segment — food ingredients, catering services, seasoning products and meat distribution — expanding steadily.

Packaging affiliate Dongwon Systems saw cumulative third-quarter sales rise 7.9 percent year on year to 1.14 trillion won, while operating profit climbed 16.7 percent to 68.4 billion won, driven by stronger exports of high-value-added products such as eco-friendly packaging materials and growth at its overseas subsidiaries. Logistics affiliate Dongwon Loex posted double-digit growth in both sales and operating profit despite a decline in global cargo volumes, thanks to an expanded client base in the industrial and consumer goods sectors.

"Even in a challenging business environment marked by a high exchange rate and rising costs, expanded B2B sales channels and export growth underpinned the group's earnings," a Dongwon Group official said. "We will continue to pursue profitability-focused management while sustaining investment to identify new growth engines."


spa@heraldcorp.com