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Consumer Non-Durables

ORION Holdings Corp. (Korea)

Company Background

Orion is one of South Korea's largest confectioners, alongside Lotte Confectionery. It sells more overseas than it does in its home market. Best known for its Choco Pie cakes and Pokachip potato chips, the company has diversified its product line in recent years.

 

Founded as the Tong Yang Confectionery in 1956, the company expanded through acquisitions. Its success was built on the Orion Choco Pie, introduced in 1974. The hit product brought a surge in sales and domestic market share, and in 2003 the company changed its name to capitalize on the strength of its pies.

 

Among its four key products -- pies, savory snacks, jelly snacks and cookies -- savory snacks and cookies have grown in importance in recent years. The company has expanded into China, Vietnam and Russia and has factories in all three countries. Orion's overseas sales now exceed 1 trillion won annually.

 

In addition to its snacks business, Orion has operations in entertainment and lotteries, but the company will withdraw from the lottery business this year to focus on confectioneries.

 

In July, Orion signed a memorandum of understanding with the Everland theme park in Yongin, Gyeonggi Province, on the outskirts of Seoul. The two will jointly market and operate the attraction, which is based on the concept of a fairy tale candy house.

Business Summary

ORION Holdings Corp. engages in the provision of investment and consulting services. Through its subsidiaries, it manufactures and distributes snacks and confectionary products. The company was founded by Yang-Gu Lee on July 25, 1956 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue2,415.05B2,108.92M
Gross Profit870,586.30M760.23M
Operating income315,697.39M275.67M
Income before tax320,796.90M280.13M
Net income85,985.01M75.08M
EBITDA552,642.14M482.58M
Diluted EPS1,429.351.24
Dividends Per Share6500.56
Total Assets4,961.78B4,173.95M
Total liabilities1,090.94B917.72M
Total equity2,097.49B1,764.45M
Operating cash flow446,496.36M389.89M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 112,748.27M 1,997.68B 2,103.59B 2,280.48B 2,415.05B
Gross Profit 26,550.85M 880,052.39M 836,119.04M 867,832.77M 870,586.30M
Operating income 4,900.91M 230,512.59M 266,659.51M 308,628.63M 315,697.39M
Income before tax -40,003.79M 240,931.38M 243,112.72M 324,255.55M 320,796.90M
Net income -47,333.26M 56,332.23M 48,378.51M 77,512.47M 85,985.01M
EBITDA 64,324.29M 448,221.07M 521,962.86M 546,708.70M 552,642.14M
Diluted EPS -252 936.43 804.20 1,288.51 1,429.35
Dividends Per Share 600 650 650 650 650
Total Assets 4,302.84B 4,342.13B 4,366.33B 4,497.55B 4,961.78B
Total liabilities 1,184.94B 1,165.54B 1,028.70B 1,002.84B 1,090.94B
Total equity 1,847.85B 1,876.06B 1,926.13B 1,966.41B 2,097.49B
Operating cash flow -8,784.02M 350,515.23M 342,587.75M 420,303.27M 446,496.36M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 99.73M 1,815.22M 1,803.82M 1,932.80M 2,108.92M
Gross Profit 23.48M 799.67M 716.96M 735.52M 760.23M
Operating income 4.33M 209.45M 228.65M 261.57M 275.67M
Income before tax -35.38M 218.92M 208.46M 274.81M 280.13M
Net income -41.86M 51.18M 41.48M 65.69M 75.08M
EBITDA 56.89M 407.28M 447.58M 463.35M 482.58M
Diluted EPS -0.22 0.85 0.68 1.09 1.24
Dividends Per Share 0.53 0.59 0.55 0.55 0.56
Total Assets 4,019.28M 3,891.49M 3,775.63M 4,140.24M 4,173.95M
Total liabilities 1,106.85M 1,044.58M 889.53M 923.17M 917.72M
Total equity 1,726.08M 1,681.36M 1,665.55M 1,810.19M 1,764.45M
Operating cash flow -7.76M 318.50M 293.76M 356.22M 389.89M

Valuation Measures

Dec 2021
PER11.15
ROA1.81%
ROE4.23%
Operating margin13.07%
Profit margin3.56%

Key executives

  • Vice Chairman & Chief Executive Officer: In-Cheol Heo
  • Director, Vice President & Head-Management Support: Seong-Gyu Park
  • Vice Chairman-Executive Board: Hwa-Kyung Lee
  • Chairman-Executive Board: Cheol-Gon Tam
  • Managing Director & Head-Planning Team: Ho-Jeong Shin

Shareholders

  • LEE HWA-KYUNG (32.6%)
  • TAM CHEOL-GON (28.7%)
  • National Pension Service of Korea (5.2%)
  • ORION Holdings Corp. (Korea) (3.9%)
  • TAM KYUNG-SUN (1.2%)
  • TAM SUH-WON (1.2%)
  • Dimensional Fund Advisors LP (0.8%)
  • The Vanguard Group, Inc. (0.7%)
  • North of South Capital LLP (0.5%)
  • BlackRock Fund Advisors (0.4%)

Contact Details

Related Companies

  • Orion International Euro OOO
  • Crespo Co., Ltd. (Korea)
  • Supreme Star Investment Ltd.
  • Orion Reports
  • Megamark Corp.
  • SportsToto Co., Ltd.
  • SHOWBOX Corp.
  • Orion Holdings Corp. ESOA
  • Show Box

Competitors

  • Next Entertainment World Co., Ltd.
  • SHOWBOX Corp.
  • CJ ENM Co., Ltd.
  • Walt Disney Company
  • Sony Group Corporation
  • ContentreeJoongAng corp.
  • Netflix, Inc.
  • AT&T Inc.
  • CJ CGV Co., Ltd
  • Lotte Shopping Co., Ltd
  • STUDIO SANTA CLAUS ENTERTAINMENT Co., Ltd.
Last Updated on 4 Oct, 2022

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