Daedong reports KRW 1.1769 trillion in cumulative sales and KRW 82.8 billion in operating profit as of Q3
Daedong third quarter cumulative sales and operating profit grow three years in a row
-.Consolidated sales and operating profit, increased by 3.5% and 2.6% on a cumulative basis, respectively, compared to the previous year, and increased by 5.8% and 50% on a quarterly basis, respectively
-.Stronger sales in North America in the second half of the year, added focus on key markets, wider portfolio with mid- to large-sized agricultural machinery all contribute to better performance in both Korea and abroad
-. Next year, Daedong wants to push for the transition to smart rice farming in Korea, add more export destinations and products, expand implements, and promote the company’s robot business ahead of schedule
Future agtech platform company Daedong (CEO Kim Jun-sik, Won Yu-hyun) announced on November 15 that on a consolidated basis, its cumulative sales and operating profit in the third quarter of this year increased by 3.5% and 2.6%, respectively, to KRW 1.1769 trillion and KRW 82.8 billion compared to the same period last year. This means the company has successfully improved its performance in the third quarter for three years in a row between 2020 and 2023.
Looking at the third quarter alone, consolidated sales and operating profit for Daedong came in at KRW 341.2 billion and KRW 19.5 billion, up 5.8% and 50% from the same period last year. This means the company’s third-quarter performance has improved over the last three years from 2020 to 2023. Daedong appears to have increased sales and profitability in the second half of the year despite the soaring interest rates around the world and severe recession by focusing on bolstering its sales and promotional efforts in North America, expanding the range of products on offer, concentrating key markets, strengthening its sales of medium and large-sized agricultural machinery, and improving cost factors such as transportation costs.
On a related note, in North America, where the market for tractors under 100 horsepower decreased by about 11% this year compared to the same period last year, cumulative sales in the third quarter saw a slight uptick due to strengthening sales of tractor + implement packages, targeting the small construction equipment market, and sales marketing such as the “Korea Tour” offered to KIOTI dealers. In Europe, product supply enjoyed a stronger sales/service system thanks to a corporate reorganization, and in Australia, Daedong focused on promoting mid- to large-sized tractors. As a result, cumulative sales in the third quarter increased by 38.1% in Europe and 39.1% in Australia compared to the same period last year. Through this strategic response to the market, Daedong's cumulative overseas sales in the third quarter on a consolidated basis amounted to KRW 797.4 billion, an increase of approximately 4.7% over the previous year, and this meant that exports accounted for approximately 68% of total sales. The overseas sales share of mid- to large-sized tractors also rose to 17%, a 5% increase compared to the same period last year, on a cumulative basis in the third quarter of 2023.
Based on government loans, even though the number of agricultural machinery sold domestically through the third quarter of this year dropped by roughly 22% compared to the previous year, cumulative consolidated sales in the third quarter (domestic) increased by about 1.2% compared to 2022. It appears this jump in sales for mid- to large-sized tractors is in line with the latest market trend driven forward by large agricultural machinery. Market share increased compared to the same period last year thanks to more robust sales of mid to large tractors such as RX and HX and higher horsepower models such as the new 6-lane combine DH6135.
Next year, Daedong plans on launching an AI-powered autonomous agricultural machinery as well as platform-based precision farming services for rice paddy farming, promoting the “smartization” of paddy farming with a focus on rice, a staple crop in open-field agriculture. Overseas, the company wants to broaden the scope of its export market in Europe, Australia, and Africa, and continue to change its main sales model from small- and medium-sized tractors to mid- and large-sized tractors. Furthermore, to maximize sales, Daedong is looking to expand its lineup of mid- to large-sized tractor implements more suitable for the North American and European markets, such as grapples, cutters, and rakes, and strengthen its overseas sales of small construction equipment, including skid steer loaders and track loaders, and diesel engines. The company also plans to speed up its business with the goal of selling agricultural/non-agricultural robot products such as autonomous transport robots and robot mowers in 2024.