Market Expansion and Efficiency Worked... Orion Achieved Record High Pre-Tax Profit Last Year

Operating profit of 492.3 billion KRW, up 5.5% YoY
Sales of 2.9124 trillion KRW, nearing 3 trillion
Korean subsidiary surpasses 1 trillion KRW in sales for the first time
Dividend per share increased from 950 KRW to 1250 KRW
Revenue increased 6.8% YoY to 520 billion KRW

Orion announced on the 7th that its consolidated operating profit for last year was preliminarily estimated at 492.3 billion KRW, up 5.5% from the previous year. Sales increased by 1.4% to 2.9124 trillion KRW. Pre-tax profit rose 6.8% to 520 billion KRW, marking an all-time high.

Orion Product Collection
Photo by Orion

The company explained that operating profit rebounded through management efficiency despite rising raw material prices, and sales increased due to strengthened product competitiveness, active sales activities, and expanded production facilities. Orion decided to increase the dividend per share by 31.6%, from the previous 950 KRW to 1,250 KRW, to enhance shareholder value.

The Korean subsidiary surpassed 1 trillion KRW in sales for the first time ever. Sales grew 13.9% to 1.07 trillion KRW, and operating profit increased 20.4% to 168.8 billion KRW. This year, to respond to increased product demand, the company plans to begin construction of the Jincheon logistics center, increase production of pies and biscuits, and additionally establish production lines for jelly and other products.

Dr. You Jeju Lava Water plans to continue external growth by diversifying domestic sales channels and expanding exports to China and other countries. Market O Nature will focus on increasing its market share in granola. Exports will also expand by entering large distribution channels in North America, including the U.S., and increasing product items, while also pursuing regional expansion in China, Japan, and Europe.

The Chinese subsidiary recorded sales of 1.1789 trillion KRW, down 7.5% due to the weak yuan and other factors, but operating profit increased 4.4% to 221 billion KRW through logistics cost reductions. This year, the company plans to establish a highly efficient indirect sales system to ensure products are fully displayed in more sales outlets, and expand cost-effective bulk displays in response to slowing domestic consumption in China. Supply of products for growth channels such as snack shops, warehouse stores, and e-commerce exclusive products will also increase. Additionally, the company plans to enter new markets such as vegan jerky and build a potato flake production line and potato warehouse to establish a stable raw material supply system for potato snacks, which have large sales volume.

The Vietnamese subsidiary posted sales of 475.5 billion KRW, up 0.5%, while operating profit decreased 2.6% to 87.5 billion KRW due to initial costs from new product launches such as dairy beverages. This year, the company will focus on expanding market dominance of pies and snacks, and actively expand the 7 trillion KRW dairy beverage market newly developed last year. It also plans to complete the expansion of the Hanoi factory and construction of a new production building within the year, and pursue acquisition of a new factory site in Ho Chi Minh City for long-term growth.

The Russian subsidiary recorded sales of 200.3 billion KRW, down 4.5%, and operating profit of 32.1 billion KRW, down 7.5%, due to a 20% decline in the ruble’s value. However, on a sales volume basis, sales and operating profit increased by 19.3% and 15.9%, respectively. The company explained that the pie production line expanded at the end of last year will be fully operational this year, expecting significant sales growth. It also plans to establish additional production lines and early market establishment of the newly launched jelly category.

An Orion official said, "Although the Chinese and Vietnamese Lunar New Year (Chunje/春節, Tet) event effects were absent, both sales and operating profit increased through market expansion and management efficiency. This year, we will continue stable growth in the food business through product enhancement and continuous facility investment, and secure growth momentum by promoting the bio business as a core group business."

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