Dongwon Industries 2Q Operating Profit Reaches 151.5 Billion Won, Up 13.3% Year-on-Year

Interim Dividend Announced
600 Won Per Common Share

On August 12, Dongwon Industries, the business holding company of the Dongwon Group, announced that its consolidated second-quarter sales reached 2.572 trillion won, with operating profit of 151.5 billion won, representing increases of 9.0% and 13.3% year-on-year, respectively. For the first half of the year, cumulative sales amounted to 5.102 trillion won and operating profit to 297.6 billion won, up by 9.1% and 15.1%, respectively.

On a separate basis, Dongwon Industries posted first-half sales of 632.2 billion won, up 9.1%, and operating profit of 122.6 billion won, up 2.7%. This slight improvement in earnings was attributed to expanded distribution of seafood products such as sashimi-grade tuna and mackerel.

Despite challenges faced by the B2C food affiliates due to factors such as high exchange rates, rising costs, and sluggish domestic consumption, Dongwon explained that expanded channels in B2B sectors—namely food ingredients distribution, packaging materials, and logistics—as well as increased exports, served as growth drivers.

Dongwon F&B, the group’s B2C food affiliate, saw a slight sales increase driven by growth in online channels. However, operating profit declined by 7.2% due to accumulated cost pressures and intensifying competition in offline channels.

Dongwon Homefood, a B2B food ingredient distribution company, delivered steady performance across all divisions, including seasonings, food ingredients, food service, and livestock distribution. The company expanded its client base for food ingredients and food services, while the meat business grew based on the expansion of new product categories.

Dongwon Systems, the group’s packaging materials affiliate, benefited from increased exports of high value-added products such as its eco-friendly Unimaterial packaging and from the growth of overseas subsidiaries. On a consolidated basis, first-half sales increased by 5.2% to 740 billion won, and operating profit grew by 15.5% to 44.4 billion won.

Dongwon Loex, the group's logistics affiliate, also contributed to overall group performance, with sales growing by nearly 10% and operating profit increasing by double digits. This was attributed to the acquisition of new clients and improved transport efficiency.

A Dongwon Group representative stated, “Despite ongoing cost pressures in the food sector, the growth of B2B affiliates in packaging materials, food ingredient distribution, and logistics drove results across the group. While the business environment remains challenging, we will continue to build a stable operational foundation by strengthening internal capabilities.”

Meanwhile, Dongwon Group will carry out an interim dividend. Dongwon Industries resolved at a board meeting held on the same day to raise its interim dividend for common shares from last year’s 550 won to 600 won per share. Dongwon Systems also confirmed an interim dividend of 300 won per common share at its board meeting on the same day.

This content was produced with the assistance of AI translation services.