Orion Reports 26% Increase in Q1 Operating Profit Driven by Overseas Growth

Orion has reported a double-digit improvement in performance for the first quarter of this year, driven by growth in its overseas subsidiaries.

The company announced on May 15 that its consolidated operating profit for the first quarter reached 165.5 billion won, a 26% increase compared to the same period last year. Revenue rose 16% to 930.4 billion won.

The growth was primarily attributed to overseas subsidiaries in China, Vietnam, and Russia. The Chinese subsidiary reported sales of 409.7 billion won, a 24.8% increase, benefiting from the peak season of the Lunar New Year and increased sales of key products such as potato snacks, pies, and jelly. Operating profit in China surged 42.7% to 79.9 billion won.

In Vietnam, the subsidiary continued its growth trend, driven by seasonal demand during the Tet holiday and the impact of new products. First-quarter sales reached 151.3 billion won, with operating profit increasing by 25.2% to 26.6 billion won.

The Russian subsidiary saw a 34.7% increase in sales to 90.5 billion won, with operating profit rising 66.2% to 14.2 billion won, thanks to expanded production capacity for products like Choco Pie and Fresh Pie and enhanced dedicated products for various distribution channels. The Indian subsidiary, now in its fifth year of local sales, recorded a 67% increase in revenue, reaching 9.8 billion won.

Despite sluggish domestic demand, a decrease in sales partners, and rising prices of key raw materials, the Korean subsidiary achieved slight growth. First-quarter sales were 283.4 billion won, up 0.4%, while operating profit increased by 4.6% to 48.5 billion won.

Orion plans to continue its growth trajectory in the second half of the year by expanding production facilities both domestically and internationally. The Korean subsidiary will enhance production lines for Poca Chips and nachos to meet summer snack demand. In China, the company aims to accelerate its efforts in key growth markets in the central and southern regions, including Guangzhou.

In Vietnam, a newly established snack and candy production line at the Hanoi Yen Phong factory will begin full operations to increase product supply. In Russia, the company plans to double the production capacity of its rapidly growing Choco Pie line. India will also see additional production lines for Choco Pie and custard.

An Orion official stated, "With investments in domestic and international production and logistics facilities, we expect to accelerate our growth in the second half as supply volumes increase."

Additionally, due to the increase in overseas sales of confectionery, Orion's total assets reached 5.143 trillion won last year, marking its first inclusion in the Fair Trade Commission's designated large business group this year.