Russia and China Drive Orion's Double-Digit Growth in Q1

Sustained Growth in China, Vietnam, and Russia Subsidiaries

Operating Profit Reaches KRW 165.5 Billion, Operating Margin at 17.8%

Orion achieved double-digit growth in both sales and operating profit in the first quarter of this year, driven by strong performance from its overseas subsidiaries.

On May 15, Orion announced that its consolidated sales for the first quarter of this year reached 930.4 billion won, a 16% increase compared to the same period last year. Operating profit rose by 26% to 165.5 billion won. The operating profit margin stood at 17.8%.

Image of Orion's global flagship product. Provided by Orion.

Overseas Subsidiaries Lead High Growth, Russia and China Drive Performance

The Russian subsidiary recorded the highest growth rate. Sales rose by 34.7% to 90.5 billion won, supported by expanded production of ChamBungeoppang and Fresh Pie, strengthened exclusive products for each distribution channel, and the successful establishment of a multi-product system. Operating profit increased by 66.2% to 14.2 billion won.

The Chinese subsidiary's performance was driven by the effect of the Lunar New Year peak season and increased sales of core products such as potato snacks, pies, and jellies. A business strategy focusing on high-growth channels, including snack shops and e-commerce, also proved effective. As a result, sales rose by 24.8% to 409.7 billion won, while operating profit increased by 42.7% to 79.9 billion won.

The Vietnamese subsidiary saw a 17.9% increase in sales to 151.3 billion won and a 25.2% rise in operating profit to 26.6 billion won, thanks to Tet holiday demand and strong sales of new products. The Indian subsidiary also delivered results with a sales expansion strategy centered on the northeastern region, resulting in a 67% increase in sales to 9.8 billion won.

However, the Korean subsidiary experienced limited growth due to sluggish domestic demand, decreased sales channels, and rising prices of key raw materials. Sales rose by only 0.4% to 283.4 billion won, while operating profit increased by 4.6% to 48.5 billion won. Orion explained that the increase in royalty income from the growth of overseas subsidiaries was also reflected in the results.

Orion Expands Production Capacity to Meet Global Demand

Orion plans to accelerate investments in expanding domestic and overseas production capacity and logistics infrastructure in the second half of the year. A company spokesperson said, "With proactive investments in production and logistics facilities both in Korea and abroad, we expect to further accelerate growth in the second half as supply volume increases."

The Korean subsidiary will expand Poca Chip and Nacho production lines to target peak summer snack demand. Following last April's expansion of the Bichobi line, an additional Castard production line will also be established. Construction of the Jincheon Integrated Center, scheduled for completion in the second half of next year, is proceeding as planned to meet rising market demand. Orion also plans to strengthen its portfolio of health-oriented products such as low-sugar and high-protein snacks, and focus on expanding exports, particularly to the United States, China, and Europe.

The Chinese subsidiary will expand exclusive products, focusing on high-growth channels such as snack shops, e-commerce, and warehouse-type stores. The company will also accelerate efforts to target key central and southern markets with high growth potential, such as Hangzhou and Guangzhou. In particular, demand for fresh potato snack Swing Chip is surging, with the production line operating at over 150% capacity and sales growing by more than 40%, prompting the addition of another production line. At the same time, Orion will further strengthen its portfolio of health-oriented products such as low-sugar pies and nutritional snacks.

The Vietnamese subsidiary will expand its market share through growth channels such as convenience stores and hypermarkets. The newly established snack and candy production lines at the Yen Phong plant in Hanoi will be fully operational to increase supply. For rice snacks, which currently have 13 production lines in operation, Orion aims to strengthen its premium product range and boost exports to Southeast Asia, including Indonesia, with the goal of developing them into a megabrand with annual sales of 100 billion won. The company also plans to complete its third Hanoi plant within the year and pursue construction of a fourth plant in Ho Chi Minh City.

The Russian subsidiary will double supply by improving Choco Pie production efficiency and adding another ChamBungeoppang production line. Construction of the new Tver plant, which began in January this year, is also progressing rapidly. Orion plans to further expand its product portfolio centered on ChamBungeoppang and Fresh Pie, and strengthen exclusive products for large-scale distribution channels such as X5 and Tender to maintain growth momentum.

In India, surging demand has pushed the pie production line's operating rate above 100%, leading Orion to add new Choco Pie and Castard production lines. Choco Pie production capacity is expected to increase by more than 50%. Orion will also focus on e-commerce channels to accelerate external growth in the Indian market.

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