Confectioner Orion, known for making ChocoPie, earned post-tax profits of KRW55.09 billion ($42.2 million) from its Vietnam operations in the first nine months of 2023, up 8.6% year-on-year.
It recorded sales revenues of KRW318.62 billion ($243.9 million) in Vietnam, up 3.2%. Its performance was affected by slow domestic consumption amid the country’s economic slowdown, according to the company’s Jan-Sept report.
The cost of goods sold rose 4.9% year-on-year to KRW204.67 billion ($156.6 million), or 64.2% of the sales revenue, higher than 63.2% in the same period the previous year.
Orion attributed the higher figures to the inflation impacts on some commodities like palm oil, shortening and potato. The firm also had to reduce online ads for some products, including Toonies and Marineboy snacks.
In Vietnam, pie was Orion’s biggest cash earner with KRW118.6 billion ($90.8 million), down 8% year-on-year and accounting for 40.8% of the total. Corresponding figures were KRW117.9 billion ($90.2 million), up 7.1% and 40.6% for snacks; KRW30.6 billion ($23.4 million), up 1.2% and 10.5% for biscuits.
The Korean firm earned KRW27.9 billion ($21.4 million) in revenue from exports to Iran, Mongolia, Ethiopia and other countries, up 24.9%.
The firm expects higher shipments for the upcoming New Year’s holiday and plans to increase production of rice crackers and potato chips.
Globally, Orion recorded revenues of KRW2,144 billion ($1.64 billion) in the first nine months of this year.
Its Vietnam operation accounted for 15% of the total, ranking third behind China with 41% and South Korea with 36%. Other key markets were Russia with 7% and India with 1%.