Snack maker Orion earns dividends from Vietnam for 1st time

Orion to use the proceeds of $82.3 million to buy land, expand facilities and build a logistics center in S.Korea

A Choco Pie commercial in Vietnam featuring South Korean entertainer Lee Kwang-soo (Courtesy of Orion Food Vina)
A Choco Pie commercial in Vietnam featuring South Korean entertainer Lee Kwang-soo (Courtesy of Orion Food Vina)
Ji-Yoon Yang 1
2023-09-07 21:25:53 yang@hankyung.com
Food & Beverage

South Korea’s confectionery and snack manufacturer Orion Corp. collected dividends from its Vietnamese unit for the first time as the company has enjoyed robust business in the Southeast Asian country.

The maker of the famous snack cake Choco Pie already received a dividend of 50 billion won ($37.4 million) from Orion Food Vina Co., its wholly owned subsidiary, late last month, according to industry sources in Seoul on Thursday. The South Korean company is set to collect an additional 60 billion won next month.

“We will use the dividends of 110 billion won to buy sites in Jincheon, expand facilities, build logistics centers and repay loans,” said a company official, referring to the county about 100 kilometers (62 miles) south of Seoul.

Orion reported its largest-ever earnings in 2022, driven by strong sales in emerging markets such as Vietnam. The company plans to build a third factory in the country.

It started exporting Choco Pie to the nation in 1995 and established Orion Food Vina in 2005.

The subsidiary’s sales topped 400 billion won last year after exceeding 300 billion won in 2021 and 200 billion won in 2016.

Write to Ji-Yoon Yang at yang@hankyung.com
 
Jongwoo Cheon edited this article.
#Korea #Vietnam #Orion #ChocoPie #dividends #earnings #investment #emerging

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