Dongwon Group's business holding company Dongwon Industries said it posted a preliminary operating profit of 146.2 billion won on a consolidation basis in the first quarter of this year. That was up 17.1% from a year earlier.
According to the Financial Supervisory Service's electronic disclosure system on the 8th, Dongwon Industries' first-quarter revenue on a consolidation basis was 2.35 trillion won. It rose 9.1% from a year earlier. Net profit for the period was 112.9 billion won, up 51% from a year earlier.
On a separate basis, Dongwon Industries' revenue last year was 295.8 billion won, down 7.8% from a year earlier. Operating profit for the same period was 66.6 billion won, down 35.7% from a year earlier. While affiliates in the fisheries and food segments struggled due to the ongoing strong dollar-won exchange rate, global raw material supply instability, and sluggish domestic demand, the company noted that affiliates in B2B (business-to-business) areas such as packaging materials and logistics held their ground thanks to stronger exports and increased new orders.
Operating profit at food affiliate Dongwon F&B fell more than 6% from a year earlier. In contrast, Dongwon Home Food grew across all business areas, including seasonings, food ingredients, food service, and livestock distribution. It appears to be due to an expanded base of new customers and rising B2B demand.
At packaging and materials affiliate Dongwon Systems, first-quarter revenue on a consolidation basis was 337.8 billion won. That was up 0.3% from a year earlier. Operating profit for the same period rose 3.9% to 13 billion won. This appears to reflect export growth centered on high value-added products such as flexible packaging and food cans.
Logistics affiliate Dongwon LOEX and construction affiliate Dongwon Construction Business also posted double-digit growth in both revenue and operating profit, helped by securing new volumes and winning more construction orders.
A Dongwon Group official said, "Pressures are mounting from the strong dollar-won exchange rate, raw material supply instability, and a slump in the domestic market. We do not expect the business environment to improve in the upcoming second quarter," but added, "We plan to focus on solid management based on our business portfolio spanning fisheries, food, materials, and logistics."