Orion sees record sales as snacks sell well overseas
Orion achieved its best ever performance for the first half of this year after a surge in overseas sales.
The confectionery maker announced Friday a 12.6 percent increase in sales surpassing 1.5 trillion won ($1.27 million) in the first half of the year. Its operating profit also rose by 43.5 percent on-year to 183.2 billion won over the same period.
Orion's quarterly performance also exceeded market expectations. It recorded 65.7 billion won in second quarter net profit, increasing on-year by 78.3 percent. Its sales for the same period also increased 17.3 percent on-year, reaching 515.1 billion won.
Orion said its earnings surprise was due to stellar performances overseas, especially in China, Vietnam and Russia.
Sales in China increased by 15.1 percent on-year in the second quarter and operating profit by 54.1 percent.
Its snacks and candy sold particularly well in the Chinese market. Another category that helped propel sales was its dried seaweed snacks, which it recently launched in China.
Orion plans to enter China’s 1.4 trillion won nutritional snack bar market with its Doctor You Protein Bars. It will also release new seasonal snacks to expand its customer base there.
In Vietnam, the confectionery maker recorded a 22 percent on-year increase in sales and 106.5 percent on-year increase in operating profit.
Orion’s rice snack An, released in Vietnam last year, led growth surpassing 10 billion won in sales. Cake product C’est Bon also proved popular, generating more than one billion won in sales every month.
In Russia, cookies sold well, contributing to a 26.5 percent increase in sales and a 105.4 percent increase in operating profit. Its pie products, including the famous Choco Pie, did particularly well, with on-year sales increasing 26 percent.
Orion plans to release additional Choco Pie flavors and more cookies to target Russian consumers in the remaining half of the year.
"As a result of our efficiency-focused and profit-oriented management in the first half of the year, we were able to perform well, especially in operating profits," Orion said in statement.
“Not only will Orion release new products that can lead the market, but it will also accelerate the promotion of new businesses, such as beverages and meal replacements, which we believe can generate new growth for the company. We will make a second leap forward as a global food company.”
BY KANG JAE-EUN [firstname.lastname@example.org]