Dongwon Industries posts Q3 operating profit of 149.7 billion won, up 1.1% year on year

[Financial News] Dongwon Industries increased revenue and operating profit by securing orders from new clients and expanding exports in its business-to-business (B2B) operations, despite profitability pressures in its food segment.
Dongwon Industries, the business holding company of Dongwon Group, said in a regulatory filing on the 10th that consolidated revenue for the third quarter of this year rose by 169.5 billion won (6.6%) to 2.756 trillion won, from 2.5865 trillion won in the same period a year earlier.
Operating profit rose by 1.6 billion won (1.1%), from 148.1 billion won to 149.7 billion won over the same period.
Profitability in the business-to-consumer (B2C) food segment remained under pressure due to rising costs amid a high exchange rate and intensifying competition across online and offline distribution channels. However, the company expanded orders from new clients and exports in B2B businesses, including food distribution, packaging materials and logistics.
Dongwon F&B posted a slight increase in revenue in the cumulative results through the third quarter, buoyed by overseas exports and growth in online channels. However, operating profit declined due to higher tuna prices, cost pressures from the high exchange rate and intensifying promotional competition across distribution channels.
Dongwon Home Food, a food-ingredient distribution company, expanded its business across all segments—including food ingredients, food services, seasonings and livestock product distribution—contributing to growth in both revenue and operating profit.
Packaging affiliate Dongwon Systems Corporation improved its performance, supported by expanded exports of high-value-added products such as eco-friendly packaging materials and growth at its overseas subsidiaries. Cumulative revenue through the third quarter rose 7.9% year on year to 1.1431 trillion won, while operating profit increased 16.7% to 68.4 billion won.
Despite a decline in global cargo volumes, logistics affiliate DONGWON LOEX expanded its client base in the industrial and consumer goods sectors, achieving double-digit growth in both revenue and operating profit.
A Dongwon Group representative said, “Despite the difficult business environment, including a high exchange rate and rising costs, the expansion of B2B sales channels and growth in exports supported the group’s performance,” adding, “We will continue to focus on profitability while investing to identify new growth drivers.”
[email protected] Park Kyung-ho Reporter