Doosan Group Recovers Operating Profit of 1 Trillion Won After 3 Years

Strong Performance of Affiliates

[Asia Economy Reporter Choi Seoyoon] Doosan Group achieved an operating profit of 1 trillion KRW for the first time in three years.

Doosan Corporation announced on the 9th that it recorded consolidated sales of 17.0538 trillion KRW and an operating profit of 1.1283 trillion KRW last year. Sales and operating profit increased by 32% and 22.5%, respectively, compared to the previous year. The strong performance of affiliates such as Doosan Bobcat drove the improvement in results.

Both the group's sales and operating profit have recovered to the levels before 2020, when large-scale financial restructuring was undertaken.

Along with the upward trend in performance, financial soundness indicators also improved significantly. Doosan Corporation's debt ratio last year was 156.0%, down 52.9 percentage points from the previous year, and decreased by 171.7 percentage points compared to 2019.

Looking at the performance of its own business and subsidiaries, Doosan Corporation's own business recorded annual sales of 1.3089 trillion KRW and an operating profit of 113.4 billion KRW last year. Sales increased by 5.9% year-on-year through balanced growth across all business divisions, including the Electronics BG.

Electronics BG's own sales grew 3.8% year-on-year based on a portfolio centered on high-end products, and Doosan's new business subsidiaries (Doosan Robotics, Doosan Logistic Solutions, Doosan Mobility Innovation) achieved sales growth of 17.2% year-on-year through business diversification and large-scale orders.

Doosan Enerbility recorded consolidated sales of 15.4433 trillion KRW and an operating profit of 1.1073 trillion KRW last year. Sales increased by 40.5% and operating profit by 27.4% compared to the previous year.

Last year's cumulative orders reached 7.5842 trillion KRW, up 19.6% year-on-year. With order amounts increasing over the past three years (4.6 trillion KRW in 2020, 6.3 trillion KRW in 2021, and 7.6 trillion KRW in 2022), future performance is expected to grow further. The debt ratio improved due to financial restructuring efforts, recording 128.9% (consolidated basis), down 40.4 percentage points from the end of the previous year.

Doosan Bobcat announced on the 8th that it recorded annual sales of 8.6219 trillion KRW and an operating profit of 1.0716 trillion KRW last year. Both increased by 48% and 80%, respectively, compared to the previous year, achieving the best performance ever. The annual operating profit margin was 12.4%, up 2.2 percentage points from the previous year.

Strong demand, rapid growth of the GME (agriculture and landscaping equipment) product line, and the reflection of the annual performance of Doosan Industrial Vehicles acquired in July 2021 led to the strong results. In particular, in the existing Doosan Bobcat business (excluding industrial vehicles), small equipment grew 20% and portable power grew 24% year-on-year (in dollar terms) based on solid demand in advanced markets, achieving record-high sales.