Dongwon Group has exceeded 5 trillion won in revenue for the first half of this year. While the consumer-facing (B2C) food business has slowed due to high exchange rates and a domestic recession, the business-to-business (B2B) sectors, including packaging, food distribution, and logistics, have driven overall growth. Operating profit also saw a double-digit increase.
Dongwon Industries, the holding company of Dongwon Group, reported on August 12 that its consolidated operating profit for the first half reached 297.6 billion won, with revenue totaling 5.102 trillion won. This marks a 15.1% increase in operating profit and a 9.1% rise in revenue compared to the same period last year.
For the second quarter, consolidated operating profit was 151.5 billion won, up 13.3% from the same period last year, while revenue increased by 9.0% to 2.572 trillion won.
On a standalone basis, Dongwon Industries reported an operating profit of 122.6 billion won for the first half, a 2.7% increase, with revenue rising 9.1% to 632.2 billion won. The expansion of seafood distribution, including tuna and mackerel, contributed to this revenue growth.
Performance varied between B2C and B2B sectors. The B2C food division faced declining profitability due to high exchange rates, rising costs, and a slowdown in domestic consumption. In contrast, the B2B sectors, including food distribution and packaging, experienced growth driven by new client acquisitions and increased exports.
Dongwon F&B, the food subsidiary, saw a slight increase in revenue due to growth in online channels, but its operating profit fell by 7.2% compared to the previous year. This decline was attributed to accumulated cost pressures and intensified competition in offline distribution channels.
Conversely, Dongwon Home Food, a food distribution company, showed balanced growth across its main businesses, including seasoning products, food distribution, meal services, and livestock distribution. The company expanded its client base in the food distribution and meal service sectors and increased its product offerings in the livestock business, boosting its performance.
The packaging subsidiary, Dongwon Systems, also demonstrated significant growth. Its consolidated operating profit for the first half reached 44.4 billion won, a 15.5% increase from the previous year, with revenue rising 5.2% to 740 billion won. The export of high-value products, such as eco-friendly polyethylene-based packaging, contributed to this growth, along with improved performance from overseas subsidiaries.
Dongwon Logistics also reported nearly a 10% increase in revenue, supported by new client acquisitions and enhanced transportation efficiency. Its operating profit also grew by double digits, contributing to the overall improvement in the group's performance.
In line with its performance growth, Dongwon Group plans to increase shareholder returns. Dongwon Industries announced at a board meeting that it will raise its interim dividend from 550 won to 600 won per common share. Dongwon Systems also decided on an interim dividend of 300 won per common share.
A Dongwon Group official stated, "Despite ongoing cost pressures in the food sector, the B2B divisions in packaging, food distribution, and logistics have shown solid growth, driving overall performance for the group. While the business environment remains challenging, we will strengthen our foundation for stable operations."
* This article has been translated by AI.
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