Dongwon Group's Q1 operating profit up 17.1% on expanded high-value exports

Dongwon Group has once again demonstrated its resilience and strategic foresight in navigating a challenging economic landscape. While the global economy grapples with high exchange rates, volatile raw material supply, and domestic consumption slowdowns, Dongwon Industries has not only met but exceeded market expectations for its first-quarter performance.

The success is largely attributable to the robust growth in its diversified business portfolio, particularly in packaging and logistics. Dongwon Systems, its packaging arm, saw significant expansion through high-value export products, while Dongwon Loex and Dongwon Construction Industry contributed double-digit growth by securing new projects and focusing on profitability. This strategic diversification is a testament to Dongwon's ability to adapt and thrive amidst adversity.

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Traditional core businesses like fisheries and food faced difficulties due to high exchange rates and cost pressures, but we are responding to the crisis through a diversified business portfolio including materials and logistics.

Conversely, the traditional pillars of the group, the fisheries and food sectors, faced headwinds. Dongwon Industries' separate revenue and operating profit saw a considerable decline, and Dongwon F&B's profitability was squeezed by rising raw material costs and intensified competition in the domestic market. This highlights the ongoing need for innovation and strategic adjustments within these core businesses.

However, the group's leadership remains optimistic. A Dongwon Group official emphasized the company's commitment to "lean management" and accelerating expansion into new business areas in the second quarter. This forward-looking approach, coupled with a diversified business structure, positions Dongwon Group to continue its trajectory of stable profitability and sustainable growth, proving that even in turbulent times, strategic adaptation can lead to success.

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In the second quarter, we will focus on internal management while accelerating expansion into new business areas to maintain a stable profit structure.