Orion's 3Q Operating Profit Up 15.6%... "Steady Growth Domestically and Abroad"

Sales of 766.3 Billion KRW, Operating Profit of 140.7 Billion KRW... Up 3.4% and 15.6% Year-on-Year

Orion continued its steady growth in the third quarter as both domestic and international markets showed balanced growth.

Orion announced on the 14th that its consolidated sales for the third quarter of this year were preliminarily estimated at 766.3 billion KRW, a 3.4% increase compared to the same period last year. Operating profit for the same period grew by 15.6% to 140.7 billion KRW.

The Korean subsidiary achieved sales of 272 billion KRW, up 15.3%, and operating profit of 42.9 billion KRW, up 29.2%. The company explained that by launching competitive new products and actively engaging in sales activities, it sustained growth across all categories, including the Dr. You and Market O Nature brands. Continuous cost management efforts from raw material procurement to product manufacturing also contributed to the growth in operating profit.

Orion plans to lead market trends with differentiated new products in the fourth quarter and focus on expanding the supply of key products such as pies and biscuits in line with increasing demand. The company will also ensure thorough improvements in production efficiency and manufacturing cost management to maintain steady growth in sales and profits.

The Chinese subsidiary recorded sales of 329.6 billion KRW, down 1.8% due to the impact of the yuan exchange rate, while operating profit grew 22.0% to 72.7 billion KRW. Thanks to high growth in the jelly category and the launch of new pie products, sales volume-based sales and operating profit increased by 5.5% and 30.0%, respectively.

In the fourth quarter, the company plans to continue improving its indirect sales system and focus on growth channel sales activities such as launching warehouse-type stores and online-exclusive products. In preparation for the Lunar New Year gift demand in February next year, China’s largest holiday, Orion will proactively implement a sales expansion strategy centered on pies and establish new growth engines by entering new categories such as vegan jerky.

The Vietnamese subsidiary achieved sales of 117.6 billion KRW, up 4.0%, and operating profit of 21.9 billion KRW, up 4.6%. Despite a slowdown in domestic consumption, superior product competitiveness compared to competitors drove growth in jelly, rice snacks, and mass-produced bread, and the company also newly entered the local beverage market worth 7 trillion KRW.

In the fourth quarter, Orion plans to launch gift planning products in preparation for ‘Tet,’ Vietnam’s largest holiday, to secure shelf space and focus on business-to-business (B2B) sales, which have large bulk purchase demand. The company will also expand the distribution and display of existing products such as potato snacks and pies, while steadily advancing the expansion and extension of its Ho Chi Minh and Hanoi factories to establish a long-term growth foundation.

The Russian subsidiary recorded sales of 48.5 billion KRW, down 22.2%, and operating profit of 6.7 billion KRW, down 36.6%, due to a sharp decline in the ruble’s value. Since the new Tver factory began full operation last year, the company significantly increased the supply of pie products to meet local demand and expanded product lines such as biscuits. On a sales volume basis, sales grew 19.3%, and operating profit decreased by only 3.4%.

In the fourth quarter, Orion plans to quickly establish a new jelly product in the market as a new growth pillar. It will also complete the ongoing expansion of the pie production line within the year and accelerate growth by increasing the number of dealers and distributors in line with the expanded product supply.

An Orion official stated, “Despite the challenging business environment caused by global inflation, based on product competitiveness, cumulative sales volume in the third quarter showed double-digit growth in sales in Korea and Russia, and operating profit in Korea, China, and Russia.” He added, “In the fourth quarter, we will expand production capacity to actively respond to market demand and continue growth through differentiated new product launches and proactive targeting of the holiday peak season.”

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