Orion Reports Operating Profit of 108.6 Billion KRW in Q1, Up 6.5% YoY

[Asia Economy Reporter Eunmo Koo] Orion announced on the 16th through a public disclosure that its consolidated sales for the first quarter of this year reached 653.2 billion KRW, an 8.5% increase compared to the same period last year. Operating profit for the same period rose 6.5% to 108.6 billion KRW. Orion explained, "Despite the worsening business environment due to rising raw material prices, we maintained growth through new products and management efficiency."

Sales of the Korean subsidiary increased by 10.6% to 219.7 billion KRW, while operating profit decreased by 3.2% to 34.2 billion KRW. Although sales of products such as Kkobuk Chip Sweet Vanilla flavor increased, profits declined due to price freezes and rising raw material and logistics costs. They plan to expand sales of Dr. You Jeju Lava Water and Immune Water in preparation for the summer peak season.

Sales and operating profit of the Chinese subsidiary were 305.2 billion KRW and 49.5 billion KRW, respectively, up 1.1% and 6.4%. Despite COVID-19 lockdowns, factories in Langfang and Guangzhou are operating normally, and the Shanghai factory is running at about 80% capacity. They plan to develop the southern China market and strengthen the O2O (online-to-offline) platform.

Sales and operating profit of the Vietnamese subsidiary were 102.5 billion KRW and 18.6 billion KRW, up 23.7% and 18.6%, respectively. Sales and operating profit of the Russian subsidiary were 30.3 billion KRW and 3.9 billion KRW, up 30.9% and 5.9%, respectively. In Vietnam, Choco Pie and Yangsan bread Saebong received positive responses, and the Russian factory continues to operate at 150% capacity.

An Orion official said, "Despite the difficult business environment due to rising raw material prices, we were able to maintain growth through differentiated product competitiveness and a management structure focused on efficiency and profitability," adding, "We will continue healthy growth by focusing on the essence of our business such as strengthening product competitiveness and company-wide cost management efforts through eliminating inefficiencies."