"Balanced Domestic and International Growth" Orion's Operating Profit Up 6.6% in H1 (Comprehensive)

Sales of 1.3777 Trillion KRW · Operating Profit of 211.4 Billion KRW

Orion achieved strong performance in the first half of this year as its snack products showed steady growth in both domestic and international markets.

Orion announced on the 14th through a public disclosure that its consolidated operating profit for the first half of this year reached 211.4 billion KRW, a 6.6% increase compared to the same period last year. During the same period, sales rose 7.6% to 1.3777 trillion KRW.

The Korean subsidiary recorded sales of 521.4 billion KRW, up 16.4%, and operating profit of 81.8 billion KRW, up 17.5%. Based on differentiated product strength and sales capabilities, it continued its growth by increasing market share across all categories including snacks, pies, biscuits, and jelly. In the second half, Orion plans to sustain growth through aggressive sales efforts such as launching highly competitive new products under the Pokachip MAX, Kkobukchip Spicy flavor, Dr. You, and Market O Nature brands, as well as expanding shelf space in key channels. Additionally, with continuous sales volume growth, the company plans to expand production capacity to ensure stable product supply.

The Chinese subsidiary posted sales of 561.6 billion KRW, down 1.2%, and operating profit of 89.5 billion KRW, up 5.0%. The yuan exchange rate had some impact, but on a sales volume basis, sales and operating profit grew by 0.5% and 6.8%, respectively. Due to the Lunar New Year holiday, the peak season, occurring about ten days earlier than the previous year, sales slightly declined in the first quarter; however, thanks to increased sales of jelly and potato snacks, the company shifted to double-digit growth from the second quarter. In the second half, it plans to accelerate growth by strengthening indirect sales systems and focusing on sales activities in growth channels such as warehouse stores.

The Vietnamese subsidiary recorded sales growth of 2.7% to 201 billion KRW, while operating profit decreased by 9.6% to 30 billion KRW. Despite the timing difference of the Tet holiday and a slowdown in domestic consumption, sales growth continued based on competitive new products such as rice crackers and Boom Jelly (Maigumi) and strong sales capabilities. However, operating profit declined due to ongoing cost burdens of key raw materials including rice, potato flakes, and gelatin. In the second half, the company will focus on sales and profit growth by expanding sales of existing products such as pies and biscuits and entering the dairy beverage market, while also preparing a long-term growth foundation by expanding and extending the Ho Chi Minh and Hanoi factories.

The Russian subsidiary achieved sales growth of 26.6% to 99.8 billion KRW and operating profit growth of 37.6% to 16 billion KRW. Since the new Tver plant began full operation in July last year, it has continued high growth by increasing product supply tailored to local demand. In the second half, it plans to maintain the high-growth trend by expanding sales of profitable channels and products, expanding the pie production line, and launching new jelly products in a new category.

An Orion official stated, “We have maintained steady growth by continuously improving internal efficiency based on differentiated product strength compared to competitors,” adding, “In the second half, we will implement product operations and sales strategies reflecting the situation of each subsidiary, and actively respond to increasing domestic and overseas market demand through production capacity expansion, thereby laying the foundation for ‘healthy growth.’”

This content was produced with the assistance of AI translation services.