An array of food products released by Orion. (Photo: Orion)

Orion posted 539.8 billion won in sales and 97 billion won in operating profit in the first quarter of this year on a consolidated basis.

The figures represent an 8.5 percent rise in sales and a 25.5 percent jump in operating profit compared to the same period a year ago.

Orion’s Korean operation chalked up a 7.2 percent increase in sales in Q1 on the back of rising sales of snacks such as “Pockachip,” “Sun,” “Turtle Chips,” “Chicken Pop” as well as “Choco Pies,” “Diget,” and “Dr. You Protein Bar.”
Differentiation products like Turtle Chips, a four-layer snack chip product and “Pockachip Ttangcho Soy Sauce Taste/Roasted Garlic Taste” led the growth.

“Choco Pies Strawberry Blossom,” the limited spring edition of pink Choco Pies, was sold-out of some outlets making it another outperforming item. Dr. You Protein Bar, which became popular as a healthy product for people staying home amid the pandemic, logged the best-ever monthly sales since its release in February.

Orion plans to increase its lineup for cost-conscious consumers, with offerings such as “Gamja Sok Gamja Chips ” and “Cheese-Sprinkled Chicken Pop.”

Orion also plans to secure new growth momentum by strengthening new businesses. In order to spur growth, the confectionery company will expedite the export of Orion Jeju Yongamsoo, a premium, bottled water product, to China and Vietnam while strengthening its lineup of convenient meal replacements such as “Market O Nature O Granola.”

The company’s Chinese operation recorded a 4.6 percent rise in sales in Q1, compared to the same period a year before. Sales were boosted by fast-growing snacks and retail outlets’ expanding sales via online channels, such as Tmall and Jingdong.com.

“Oh! Potato” (Hey! Tudou), one of Orion’s representative snack items, a d “Swing Chip” (Hao Yoyuchi) saw sales shooting up more than 51 percent and 30 percent in Q1, compared to the same period one year ago, respectively.

New products such as “Oh! Potato Star (Hey! Tudouchuichising) and “Swing Chip Plat Cut” got a good reception to lead rising sales.

Orion plans to release localized snacks with new tastes like “Chal Choco Pies (Nuihaoriyoyu Pie) and “Swing Chip Plat Cut” in Q2 while putting on the market small-amount versions of “Chicken Pop” and “Oh Potato Mini Start” for retailing outlets to increase its market share in China.

The confectionery company plans to build an efficient production and shipment system to cope with rising orders amid the coronavirus pandemic and ramp up product quality management.

In Vietnam, the company raked in the best-ever quarterly sales in Q1 since its entry into the country. The operation posted a 23.9 percent jump in sales on the back of the successful launch of rice snacks, mass production bread and the expansion of new marketing outlets like convenience and chain stores.

In particular, in areas such as convenience and chain stores, in which a majority of users are young, snacks like Pockachip (Ostar) and Oh Potato (Ttayo) saw sales shoot up 58 percent in Q1, compared to the same period a year ago. “Am,” a rice snack that made its debut last year, saw sales surpassing 1.6 billion won while “C’est Bon,” a mass production bread that has emerged as a morning breakfast replacement, topped 1 billion won in month sales to establish them as future growth engines.

Orion plans to continue the release of new products so that growth momentum can be maintained in Vietnam.

Marketing activities are going to be ramped up, targeting convenience and chain stores that have seen fast growth.
Its Russian operation posted a 32.8 percent surge thanks to the expanding Choco Pies lineup.

“Rise Berry,” “Cherry,” “Blackcurrent” and other Choco Pies versions, tailored to meet local consumers’ tastes, made their debut, allowing the Russian operation to post a 32 percent in Q1 sales, compared to the same period one year before, to herald what is seen a renaissance.

Orion plans to diversify not only its Choco Pies lineup, but also the biscuit lineup like “Choco Boy” and “Goute” during the second quarter of the year.

An Orion official said Orion has maintained stable growth in Korea and abroad thanks to the release of far-reaching new products and on top of the strengthening of the R&D division’s functions and product innovation.

The company plans to continue to ramp up product power by concentrating personnel and material resources on R&D activities and maintain a sound growth by successfully carrying out new products, the official added.