Dongwon Systems posts 21% rise in Q2 operating profit

Dongwon Systems disclosed Friday that its second-quarter operating profit on a consolidated basis rose 21.1 percent year-on-year to 31.4 billion won ($21.8 million), based on preliminary figures.

Sales for the same quarter climbed 9.8 percent to 402.2 billion won. For the first half of the year, cumulative sales grew 5.2 percent year-on-year to 740 billion won, while cumulative operating profit rose 15.5 percent to 44.4 billion won.

The company said its domestic operations faced broad headwinds from a prolonged period of high exchange rates, elevated oil prices and sluggish consumer demand, but added that it improved overall earnings through expanded exports of high-value-added products and growth at its overseas subsidiaries.

Dongwon Systems' materials division targeted global markets — including North America, Asia and Africa — by leading with "Uni-material," a recyclable eco-friendly packaging product. As a result, export revenue rose about 20 percent year-on-year.

TTP, the company's Vietnam-based affiliate, also recorded sales growth of about 20 percent after expanding beyond Vietnam into North American markets including the United States and Canada.

"Even amid continued instability in global raw materials supply, we improved both sales and profitability through exports of high-value-added products," a company official said. "In the second half, we will continue to expand overseas exports of K-packaging materials while working on multiple fronts to secure future growth engines, including secondary battery materials and advanced films."