We Think Dongwoo Farm To Table Co's (KOSDAQ:088910) Healthy Earnings Might Be Conservative

Dongwoo Farm To Table Co ., Ltd's (KOSDAQ:088910) solid earnings announcement recently didn't do much to the stock price. We did some analysis to find out why and believe that investors might be missing some encouraging factors contained in the earnings.

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The Impact Of Unusual Items On Profit

For anyone who wants to understand Dongwoo Farm To Table Co's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by ₩7.9b due to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Dongwoo Farm To Table Co took a rather significant hit from unusual items in the year to June 2025. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Dongwoo Farm To Table Co.

Our Take On Dongwoo Farm To Table Co's Profit Performance

As we mentioned previously, the Dongwoo Farm To Table Co's profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that Dongwoo Farm To Table Co's statutory profit actually understates its earnings potential! Furthermore, it has done a great job growing EPS over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about Dongwoo Farm To Table Co as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Dongwoo Farm To Table Co you should know about.

Today we've zoomed in on a single data point to better understand the nature of Dongwoo Farm To Table Co's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.