Sajo Dongawon Continues 3Q Profit...Pet Food New Business Gains Momentum

[Asia Economy Reporter Yoo Hyun-seok] Sajodongaowon announced on the 12th that its consolidated operating profit for the third quarter of this year recorded 3.8 billion KRW, a 77.84% increase compared to the same period last year.

Net profit also improved significantly thanks to the strong Korean won, recording 4.7 billion KRW, maintaining a profit trend in the third quarter following the second quarter. Sales for the same period were 106.4 billion KRW.

On a cumulative consolidated basis, operating profit achieved 13.6 billion KRW, a 26.61% increase from last year, continuing double-digit growth. Cumulative sales and net profit were 301.5 billion KRW and 5.8 billion KRW, respectively.

A company official explained, “Amid the prolonged impact of the novel coronavirus disease (COVID-19), Sajodongaowon is readjusting growth plans for each business division and pursuing a selection and concentration strategy focused on profitability. We plan to maintain a meaningful growth trend in the future by not only ensuring stable growth across all business divisions but also by actively expanding the pet food business in response to the increase of pet families and the expansion of the pet economy market in the COVID era.”

Sajodongaowon plans to diversify its portfolio of healthy pet food businesses using domestic raw materials in the domestic pet food market, where foreign products are flooding. Through the use of raw materials and joint research and development among Sajodaerim, Sajoseafood, and other Sajogroup companies with a 50-year tradition, they plan to create synergy.

A company official said, “Our core businesses, such as the milling business and feed business, are focusing on expanding market competitiveness in the mid to long term despite external environmental impacts like COVID-19 and raw material competition. The new pet business is expected to achieve additional external growth and profitability improvement through continuous new product launches in strategic collaboration with related companies. We anticipate strengthening the overall structure of Sajodongaowon’s business divisions next year.”