As High Inflation Boosts Home Meal Demand, Dongwon F&B Reports Q1 Operating Profit of 49.9 Billion KRW, Up 15% YoY

Sales of 1.119 trillion KRW... 3.5% Increase YoY
Rise in Sales of Seol Gift Sets and Home Meal Replacements

As the preference for home-cooked meals continues amid high inflation rather than dining out, Dongwon F&B recorded nearly 50 billion KRW in operating profit in the first quarter of this year.

Dongwon F&B announced on the 3rd that its consolidated operating profit for the first quarter of this year was preliminarily estimated at 49.9 billion KRW, a 14.8% increase compared to the same period last year. During the same period, sales rose 3.5% year-on-year to 1.119 trillion KRW.

A Dongwon F&B official explained, "In line with the trend of eating at home, we focused on selling cost-effective practical gift sets, and the sales of gift sets significantly increased compared to the previous year due to the timing difference of the Lunar New Year holiday." Additionally, sales of home meal replacements (HMR) such as instant rice and soups/stews continued to perform well, and the seasoning products like tuna extract, dairy products, and beverage sectors showed stable growth.

Consolidated subsidiaries, including Dongwon Home Food, a B2B comprehensive food company, also showed balanced growth. Dongwon Home Food saw a significant increase in demand for group meals and catering ingredients due to the downturn in the dining-out market, and thanks to solid growth in the livestock distribution business and seasoning business, sales and operating profit increased by 5.1% and 18.3%, respectively, compared to the previous year.

A Dongwon F&B official stated, “We will nurture newly launched products with differentiated concepts, such as the container-type soup/stew ‘Yangban Ttukbaegi’ and the bibimbap HMR ‘Yangban Bibimdeubap,’ into major items, while actively promoting overseas exports to establish a sustainable growth structure.”