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Miscellaneous

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 2019 KRWUSD
Revenue2,103.59B1,803.82M
Gross Profit836,119.04M716.96M
Operating income266,659.51M228.65M
Income before tax243,112.72M208.46M
Net income48,378.51M41.48M
EBITDA521,962.86M447.58M
Diluted EPS804.200.68
Dividends Per Share6500.55
Total Assets4,366.33B3,775.63M
Total liabilities1,028.70B889.53M
Total equity1,926.13B1,665.55M
Operating cash flow342,587.75M293.76M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,382.37B 127,964.47M 112,748.27M 1,997.68B 2,103.59B
Gross Profit 1,095.49B 25,328.04M 26,550.85M 880,052.39M 836,119.04M
Operating income 301,355.91M -1,793.96M 4,900.91M 230,512.59M 266,659.51M
Income before tax 252,123.23M -1,501.75M -40,003.79M 240,931.38M 243,112.72M
Net income 162,197.22M -10,142.53M -47,333.26M 56,332.23M 48,378.51M
EBITDA 483,103.49M 49,873.56M 64,324.29M 448,221.07M 521,962.86M
Diluted EPS 9,035.96 1,314.49 -252 936.43 804.20
Dividends Per Share 1,754.21 1,754.21 600 650 650
Total Assets 2,998.83B 2,908.86B 4,302.84B 4,342.13B 4,366.33B
Total liabilities 1,472.66B 1,203.96B 1,184.94B 1,165.54B 1,028.70B
Total equity 1,378.71B 1,599.52B 1,847.85B 1,876.06B 1,926.13B
Operating cash flow 396,179.29M 340,626.40M -8,784.02M 350,515.23M 342,587.75M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,104.93M 110.29M 99.73M 1,815.22M 1,803.82M
Gross Profit 967.92M 21.83M 23.48M 799.67M 716.96M
Operating income 266.26M -1.54M 4.33M 209.45M 228.65M
Income before tax 222.76M -1.29M -35.38M 218.92M 208.46M
Net income 143.30M -8.74M -41.86M 51.18M 41.48M
EBITDA 426.84M 42.98M 56.89M 407.28M 447.58M
Diluted EPS 7.98 1.13 -0.22 0.85 0.68
Dividends Per Share 1.54 1.51 0.53 0.59 0.55
Total Assets 2,557.53M 2,408.39M 4,019.28M 3,891.49M 3,775.63M
Total liabilities 1,255.94M 996.82M 1,106.85M 1,044.58M 889.53M
Total equity 1,175.82M 1,324.32M 1,726.08M 1,681.36M 1,665.55M
Operating cash flow 350.04M 293.59M -7.76M 318.50M 293.76M

Valuation Measures

Dec 2019
PER22.13
ROA1.11%
ROE2.54%
Operating margin12.67%
Profit margin2.29%

Key executives

  • Vice Chairman & Chief Executive Officer: In-Cheol Heo
  • Vice Chairman-Executive Board: Hwa-Kyung Lee
  • Chairman-Executive Board: Cheol-Gon Tam
  • Managing Director: Sae-Chil Jang
  • Director, Senior MD & Head-Management Support: Seong-Gyu Park

Shareholders

  • LEE HWA-KYUNG (32.6%)
  • TAM CHEOL-GON (28.7%)
  • National Pension Service of Korea (6.1%)
  • ORION Holdings Corp. (Korea) (3.9%)
  • Matthews International Capital Management LLC (3.3%)
  • Dimensional Fund Advisors LP (1.2%)
  • TAM KYUNG-SUN (1.2%)
  • TAM SUH-WON (1.2%)
  • The Vanguard Group, Inc. (0.8%)
  • North of South Capital LLP (0.5%)

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.
  • Walt Disney Company
  • CJ ENM Co., Ltd.
  • Sony Corporation
  • Jcontentree Corp
  • Netflix, Inc.
  • Dexter Studios Co., Ltd.
  • Kiwi Media Group Co., Ltd
  • AT&T Inc.
  • CJ CGV Co., Ltd
  • Lotte Shopping Co., Ltd
Last Updated on 20 Oct, 2020

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