Daewoo Winia Group, Winia Dimchae and Other Listed Affiliates Announce Earnings Results

"Winiadimchae Turns Profitable Through Synergy with Winia Daewoo"

[Asia Economy Reporter Ki-min Lee] Daeyu Winia Group announced the performance results of its four listed affiliates for last year.

According to Daeyu Winia Group on the 26th, Winia Dimchae, the home appliance division, improved its performance through synergy with Winia Daewoo, and the automotive parts affiliates Daeyu ATEC, Daeyu Plus, and Daeyu AP recorded high operating profits.

Winia Dimchae achieved consolidated sales of 745.1 billion KRW and an operating profit of 22.6 billion KRW last year. Sales increased by 33.7% compared to 2018, and operating profit turned positive. The main reasons for the performance improvement were increased sales of the kimchi refrigerator Dimchae, expansion of the premium product ratio, and diversification of air appliances and home appliances.

Daeyu Winia explained that the turnaround to profitability by Winia Dimchae was also influenced by the synergy effect from acquiring Winia Daewoo (formerly Daewoo Electronics). The two companies combined their respective research and development (R&D) organizations and worked to reduce fixed costs through the merger of Winia Daewoo’s overseas subsidiaries.

In fact, Winia Daewoo demonstrated synergy effects with Winia Dimchae by achieving sales of 1.274 trillion KRW and a net profit of 9.5 billion KRW through these efforts.

Daeyu ATEC, a specialized automotive seat manufacturer, recorded consolidated sales of 1.2894 trillion KRW. This is an increase of 179.2 billion KRW compared to 2018. Operating profit rose 387% year-on-year to 32.6 billion KRW due to increased sales of new vehicles.

Daeyu Plus, which started as an information and communications company and expanded into new energy businesses and home appliance production, also recorded consolidated sales of 530 billion KRW last year, an increase of 26.6 billion KRW compared to 2018. Daeyu Winia stated that operating profit increased by 8.7% year-on-year to 39.5 billion KRW due to profit improvements in the steering wheel and aluminum wheel sectors.

Meanwhile, Daeyu AP, which produces automotive steering devices, recorded sales of 157.5 billion KRW last year, down about 36 billion KRW compared to 2018. Operating profit was 10.1 billion KRW.

A Daeyu Winia Group official said, “Despite the economically difficult situation, the home appliance affiliate Winia Daewoo was able to achieve meaningful growth by turning a profit through synergy with Winia Dimchae and management innovation. If last year was a year of growth through synergy among home appliance affiliates, this year will be a year in which the entire group draws a bright blueprint through the mutual growth of affiliates that achieved top growth in each field.”