"Balanced Growth in Fisheries and Food" Dongwon Group Posts KRW 258.5 Billion Operating Profit in First Half, Up 32.7% Year-on-Year

First-Half Sales Rise 6.7% to KRW 4.6779 Trillion
Export Expansion in Food and Materials Drives Performance

Dongwon Group continued its strong performance, showing balanced growth across its key business sectors such as fisheries and food. In particular, the expansion of exports in the food and materials sectors drove the improvement in results.

Dongwon Industries, the business holding company of Dongwon Group, announced through a disclosure on August 8 that its consolidated operating profit for the first half of this year was provisionally tallied at KRW 258.5 billion, up 32.7% from the same period last year. During the same period, sales increased by 6.7% to KRW 4.6779 trillion.

On a consolidated basis, sales in the second quarter reached KRW 2.3586 trillion, up 10.1% year-on-year, while operating profit grew 57.7% to KRW 133.6 billion. On a standalone basis, Dongwon Industries posted first-half sales of KRW 579.3 billion and operating profit of KRW 119.3 billion, up 0.9% and 49.7% respectively from the previous year. Profitability in the fisheries sector improved significantly due to rising fish prices.

Dongwon F&B, the food sector affiliate, saw increases in both sales and operating profit thanks to export growth and diversification of its product portfolio. Exports of strategic items such as pet food and tteokbokki to the United States began in earnest, and exports of seasoned seaweed and beverages also increased, mainly in Asia, resulting in a total export growth of over 20% year-on-year. In addition, rising demand for home dining led to stable growth in seasoned foods and ready-to-eat meals.

Subsidiary Dongwon Home Food also contributed to the improved results. The B2B (business-to-business) seasoned food business recorded robust double-digit growth, and the company is expanding into the B2C (business-to-consumer) and overseas markets, led by its low-sugar, low-calorie sauce brand Vivid Kitchen. In addition, the livestock distribution business saw improvements in both sales and operating profit at butcher shops and restaurants through diversification of its breeding portfolio.

Dongwon Systems, the materials sector affiliate, increased its sales by focusing on exports of high value-added products such as food cans and retort pouches. However, domestic market contraction led to decreased demand for some products such as PET and glass bottles, and rising raw material prices, including aluminum, resulted in a decline in operating profit. On a consolidated basis, Dongwon Systems recorded first-half sales of KRW 703.1 billion, up 7.6% year-on-year, while operating profit fell 17.1% to KRW 38.5 billion.

The rebound of Dongwon Construction Industry, the construction sector affiliate, was also notable. In the first half of this year, Dongwon Construction Industry secured new orders worth about KRW 380 billion, including the Haeundae and Anseong logistics centers and the Busan New Port warehouse, resulting in a sales increase of about 40% year-on-year for the first half. Operating profit has already surpassed last year's annual figure.

A Dongwon Group representative stated, "We achieved solid results thanks to a stable business portfolio in fisheries, food, materials, and logistics, as well as active development of new businesses," adding, "We will continue to strengthen management efficiency and sound management, while boldly investing to discover new growth engines and establish a sustainable growth structure."

Meanwhile, Dongwon Group will implement an interim dividend for the first time since its founding to enhance shareholder value. At a board meeting held on this day, Dongwon Industries decided on an interim dividend of KRW 550 per common share, while Dongwon Systems also confirmed an interim dividend of KRW 300 per common share at its board meeting on the same day.