Dongwon Industries, the business holding company of Dongwon Group, said on the 7th that quarterly operating profit under consolidation this year was 148.1 billion won. That was down 15.1% from the same period a year earlier. Revenue was 2.5865 trillion won, up 10.6% from the same period a year earlier.
Dongwon Group said the decline in operating profit was due to "higher raw material costs for seafood and packaging materials caused by the rise in exchange rates, as well as the impact of increases in ordinary wages."
On a separate basis, Dongwon Industries' cumulative revenue for the third quarter was 828.3 billion won and operating profit was 138.3 billion won, up 2.2% and 33.9%, respectively, from a year earlier. Although the catch volume decreased, sales rose slightly thanks to sales of premium products such as sashimi-grade tuna, and profitability improved on the back of cost-saving efforts.
A Dongwon Group official said, "Although profitability declined in the third quarter as difficult business conditions continued, including domestic and overseas economic slowdowns, a strong won, and raw material burdens, the company is still posting solid results," and added, "We will strengthen global business in the food and materials institutional sector and step up efforts to discover new businesses to build a sustainable growth structure."