Dongwon Industries(006040) disclosed on the 12th that second-quarter operating profit on a consolidation basis was 151.5 billion won, up 13.3% from a year earlier.
Revenue for the same period rose 9% to 2.572 trillion won. Net profit increased 18.8% to 104.6 billion won.
Dongwon Industries said results improved slightly thanks to expanded distribution of seafood such as sashimi-grade tuna and mackerel.
It added that although B2C (business-to-consumer) food affiliates faced some difficulty due to a high exchange rate, rising costs, and a sluggish domestic market, expanded sales channels in B2B (business-to-business) areas such as food materials distribution, packaging, and logistics, along with increased exports, drove group results.
Dongwon F&B, a B2C food affiliate, saw a slight increase in revenue on the back of growth in online channels, but operating profit fell 7.2% due to accumulated cost pressures and intensifying competition in offline channels.
Dongwon Home Food, a B2B food materials distribution company, delivered results across all businesses, including seasoned foods, food materials, food service, and livestock distribution. Dongwon Group said the expansion of new client companies in food materials and food services was instrumental, and the livestock business showed growth based on an expanded lineup of new items.
The packaging affiliate Dongwon Systems(014820) was supported by export growth centered on high value-added products such as eco-friendly packaging and by the growth of its overseas subsidiaries. On a consolidation basis, first-half revenue and operating profit rose 5.2% and 15.5%, respectively.
A Dongwon Group official said, "While cost pressures in the food institutional sector persist, B2B affiliates such as packaging, food materials distribution, and logistics showed solid growth, driving group-wide results," adding, "The business environment remains challenging, but we will shore up fundamentals and build a stable business base."
Meanwhile, Dongwon Group said it will conduct an interim dividend to enhance shareholder value. Dongwon Industries decided at a board meeting held that day to raise the interim dividend on common shares to 600 won per share from 550 won a year earlier. Dongwon Systems confirmed an interim dividend of 300 won per common share at a board meeting the same day.