Orion, the South Korean snack giant, posted its highest-ever first-half performance, with consolidated sales reaching 1.4677 trillion won (approximately $1.08 billion) and operating profit hitting 246.8 billion won. This marks a 6.5% increase in sales and a notable 16.8% rise in operating profit compared to the previous year, underscoring the company’s successful expansion strategy.
Key contributors to this growth were Orion’s subsidiaries in China and Vietnam. The Chinese unit reported a 23.1% boost in operating profit, driven by a shift to indirect sales channels and a focus on profitability. Similarly, the Vietnamese subsidiary saw a 16.2% increase in operating profit, supported by cost-saving measures and the expanded market presence of popular products like Choco Pie.
However, Orion’s Russian subsidiary faced headwinds due to a weakening ruble, which offset gains in local currency. Despite a 13.0% rise in production volume, sales in won terms fell slightly by 0.2%.
In addition to robust international performance, Orion benefited from the 50th-anniversary celebration of Choco Pie and rising exports of Kkobuk Chip in the U.S., further boosting profitability. The company’s emphasis on cost management throughout the supply chain also played a crucial role in its record-breaking results.
