First Read Orion Corp.: The positive FX impact in May was largely offset by rising cost pressure

Research evidence excerpt

First Read Orion Corp.: The positive FX impact in May was largely offset by rising cost pressure

Global Research

16 June 2026ab

First Read

EquitiesOrion Corp.

The positive FX impact in May was largely offset Korea

by rising cost pressure Food Products

12-month rating Neutral

12m price target Won151,000

Q: How did the results compare vs expectations?

A: Orion’s May sales grew 11.6% YoY, helped by favourable FX in China and Russia, but

OPM declined by 1.4ppt YoY as the FX benefit was largely offset by rising cost pressure Price (16 Jun 2026) Won134,000

in Korea and Vietnam. Korea remained the key drag, with sales down 2.5% YoY due to RIC: 271560.KS BBG: 271560 KS

temporary shipment restrictions at a major MT customer and weaker exports. OPM fell

Trading data and key metrics

4.0ppt YoY as higher input costs, wage inflation, and promotional expenses weighed on

profitability. Mgmt noted that discussions for partial contract renewals with the affected 52-wk range Won146,000-99,300

retailer have resumed from June. In contrast, China and Russia continued to Market cap. Won5,297b/US$3.51b

outperform, driven by strong demand in snack shop channels, e-commerce, and new Shares o/s 39.5m (ORD)

product launches. China delivered revenue/OP growth of 21%/23% YoY, while Russia Free float 56%

posted 27%/51% growth, supported by strong demand for jelly and pie products. Avg. daily volume ('000) 110

Vietnam also delivered 13% YoY growth, although margins came under pressure from Avg. daily value (m) Won14,844

rising packaging and raw material costs. Mgmt expects cost headwinds to persist Common s/h equity (12/26E) Won4210b

through July, but believes China and Russia should continue to benefit from volume P/BV (12/26E) 1.3x

growth, operating leverage and FX tailwind.