Orion Achieves Record H1-2024 Performance Amid Global Economic Challenges, Plans Further Expansion

Orion reported record-breaking results for the first half of 2024 (H1-2024), with consolidated sales reaching USD 1.08 trillion (KRW 1.46 trillion) and an operating profit of USD 182.81 million (KRW 246.8 billion). Sales rose 6.5% year-on-year (YoY), driven by enhanced product competitiveness and targeted sales strategies despite global economic challenges. Operating profits increased by 16.8% YoY, reflecting a strong emphasis on efficiency and profitability. Notably, operating earnings in China and Vietnam surged by 23.1% and 16.2% YoY, respectively, significantly boosting the overall performance.

An Orion representative stated that despite the global economic downturn, the company will continue to grow by leveraging its differentiated product capabilities, price competitiveness, and localized sales strategies. Orion will also focus on securing future growth by expanding its food business, which the solid cash flow from overseas operations will support.

Orion Reports Strong H1-2024 Performance Across Key Markets

Orion's Korean corporation reported sales of USD 406.97 million (KRW 549.4 billion), a 5.4% YoY increase, and an 11.0% YoY rise in operating profits to USD 67.26 million (KRW 90.8 billion), driven by strong sales of Choco Pie and the new Choco Pie House, along with increased overseas exports of Turtle Chips. In China, sales grew by 7.2% YoY to USD 446.08 million (KRW 602.2 billion), and operating profits surged by 23.1% to USD 81.55 million (KRW 110.1 billion), supported by a shift to more profitable sales channels. The Vietnamese corporation saw sales rise 7.7% YoY to USD 160.44 million (KRW 216.6 billion) by increasing the shelf share of high-growth rice crackers and mass-produced bread, including the increased quantity of Choco Pies. Operating profit increased 16.2% to USD (KRW 34.8 billion) due to cost efficiency improvements. Despite a production increase and market expansion in Russia, the ruble's depreciation led to a slight decline in sales and operating profit in Korean won terms, with sales down 0.2% to USD 73.77 million (KRW 99.6 billion) and operating profit down 8.9% to USD 10.74 million (KRW 14.5 billion).

Figure 1. Orion’s Choco Pie and Choco Pie House

Orion Plans Strategic Regional Initiatives to Strengthen Global Market Position in H2-2024

Orion is set to bolster its market position in the snacks and confectionery sector in the second half of 2024 through strategic initiatives tailored to each region, focusing on its essential products.

In Korea, Orion plans to leverage the price competitiveness of its leading brands, such as Choco Pie and Turtle Chips, by introducing affordable "KRW 1,000 snacks" (USD 0.74) to ease consumer burdens during the economic downturn. The company will also expand its product line with health-oriented snacks, catering to current consumer trends.

The corporation plans to expand its product offerings in growth channels like snack shops and bulk markets in China, including strengthening sales capabilities by developing partnerships with specialized small and medium-sized businesses and increasing the range of products in these channels. Key products like Oh! Potato (Oh! Gamja), Yegam, and Goraebab, which account for about 40% of total sales, will benefit from a new potato flakes production line in Shenyang, ensuring a stable supply and reducing raw material and logistics costs.

Figure 2. Orion’s Oh! Potato (Oh! Gamja), Goraebab, and Yegam

Orion’s Vietnam subsidiary achieved USD 160 million in revenue, a 7.7% YoY increase driven by the growing market share of Choco Pie, rice crackers, and mass-produced bread. Orion Vietnam plans to further promote key brands, such as Gouté, Choco Pie, O’Star, Marine Boy, and Toonies, by reorganizing product lines and introducing new products targeting children, including jelly. The company will also expand its reach by focusing on convenience stores, like Circle K and VinMart+, and popular e-commerce channels like Shopee and Lazada among young consumers.

In Russia, Orion will capitalize on its increased Choco Pie production capacity and focus on expanding the market distribution of new products like Fresh Pie and Jelly Boy. With renewed partnerships with major chain stores like X5 and K&B, Orion plans to grow its presence with an active sales strategy.

Figure 3. Orion’s Jelly Boy (Lychee, Grape, and Passion Fruit flavors)

Orion is also pursuing growth in new markets, including India and the United States (US). The company will target India’s Northeastern region and introduce diversified products, such as custard and white chocolate pies, supported by the new pie production line built in 2023. Turtle Chips is forecasted to generate USD 15.01 million (KRW 20 billion) in sales in the US, with plans to expand the market for other competitive products like jelly and fish-shaped bread. Furthermore, Orion aims to increase exports to Japan, Australia, and Canada to reach USD 75.07 million (KRW 100 billion) in overseas sales for the Korean corporation by the end of the year.

Figure 4. Orion’s Custard Pies

Orion's strategic initiatives and strong product offerings position the company for continued growth and market expansion in H2-2024. By leveraging its global reach, price competitiveness, and focus on efficiency, Orion is well-equipped to navigate economic challenges and drive further success across its key markets.