[Edaily Reporter Kim Ji-woo ] ORION(271560)boosted both its revenue and profitability in the second quarter of this year. Despite the burden of rising energy, logistics, and raw material costs due to the prolonged war in the Middle East, the growth of its overseas subsidiaries supported the company’s financial performance.

ORION announced on the 14th that its consolidated revenue for the second quarter of this year reached 893.6 billion won, a 15.0% increase compared to the same period last year. Operating profit for the same period rose 9.2% to 132.6 billion won.

For the first half of this year, consolidated revenue reached 1.8239 trillion won, a 15.5% increase compared to the same period last year, while operating profit rose 17.9% to 298 billion won. Overseas subsidiaries in China, Vietnam, and Russia drove these results with balanced growth.

Looking at first-half performance by country, the South Korean subsidiary saw revenue rise 1.7% to 583.4 billion won despite a decline in the number of business partners; however, operating profit fell 5.4% to 89.7 billion won due to higher manufacturing costs and selling, general, and administrative expenses.

The Chinese subsidiary saw sales rise 24.4% to 787.7 billion won, driven by continued sales growth following the Lunar New Year, the expansion of products tailored for high-growth channels such as snack bars, and increased sales of potato snacks. Operating profit rose 33.7% to 144.7 billion won.

The Vietnam subsidiary saw revenue rise 15.9% to 267.7 billion won and operating profit increase 15.2% to 41.0 billion won, despite a sharp rise in energy costs caused by the war in the Middle East. This growth was driven by sustained demand following the Tet holiday, the launch of new products such as rice crackers, and expanded sales of limited-edition summer pies.

The Russian subsidiary saw revenue rise 32.1% to 195.5 billion won and operating profit increase 62.2% to 29.6 billion won, driven by the expansion of its product lineup to include watermelon pie, Fresh Pie, goldfish-shaped pastries, chocolate clusters, and jelly.

ORION plans to accelerate the expansion of its production infrastructure to meet growing demand. In South Korea, the company is investing 460 billion won to construct the Jincheon Integrated Center, targeting completion in the second half of next year. The Russian subsidiary, where factory utilization rates exceed 100%, is investing 240 billion won to build a new factory wing in Tver.

The Vietnamese subsidiary is building a new logistics center in Da Nang, while the Chinese subsidiary is expanding its potato flake production line in Xianyang and constructing a new factory dedicated to snacks, with the aim of strengthening the production base for potato snacks, a key growth category.

In the second half of the year, the company plans to successively expand and launch production lines for products currently in short supply: Pokachip, Castard, and Nacho in Korea; Swing Chip in China; Cham Bungeoppang in Russia; and Choco Pie and Castard in India.

An ORION official stated, “As new production lines for snacks, pies, and jellies begin full-scale operations domestically and internationally in the second half of the year, and as global production facilities are expanded sequentially, our growth momentum will accelerate,” adding, “We expect this will help us achieve our sales target of 5 trillion won and operating profit of 1 trillion won ahead of schedule.”