ORIOR : Ad hoc announcement 21 August 2024
ORON.SW
Ad hoc announcement pursuant to Art. 53 LR
ORIOR grows with its international business;
results in line with expectations
The internationally active Swiss food & beverage group ORIOR has achieved growth in a challenging environment. The EBITDA margin remained under pressure, due to external influences and the shift in the product mix. "The results are in line with our expectations. We are very pleased with the performance of the International segment. Given the overall conditions, a considerable share of the Swiss business also did well," commented Daniel Lutz, CEO of the ORIOR Group.
Net sales in the first half of 2024 increased by 0.6% over the previous year to CHF 314.0 million (H1 2023: CHF 312.1 million). Organic growth reached 1.4%, while the exchange rate effect was -0.8%. In particular, the International segment, consisting of the Culinor, Casualfood, Gesa and Spiess Europe companies, once again posted very good growth of +5% (in CHF), while the Refinement segment, at +1.6%, also had a positive impact on growth. The Convenience segment was unable to fulfil expectations and recorded a decline of -4.6%. The Group's gross margin was 47.9%, 96 basis points below the same period of the previous year.
EBITDA reached CHF 26.6 million (H1 2023: CHF 30.5 million), corresponding to an EBITDA margin of 8.5%
(H1 2023: 9.8%). As anticipated, it was not yet possible to fully offset the pressure on profitability in the first half of 2024. The rapid rise in pork prices in autumn 2023 and their continued high levels, together with high personnel costs and shifts in the product and channel mix, had a negative impact on profitability. The main driver of the high personnel costs was the planned increase in staff numbers at Casualfood in order to cover the busy summer months. As a result, EBIT fell to CHF 12.8 million (H1 2023: CHF 16.8 million), corresponding to an EBIT margin of 4.1% (H1 2023: 5.4%). Net profit was CHF 9.4 million (H1 2023: CHF 12.9 million).
Cash flow from operating activities amounted to CHF 15.7 million due to the lower consolidated net profit
(H1 2023: CHF 18.8 million). Cash flow from investment activities totalled CHF -29.0 million (H1 2023: CHF -9.9 million), due to the purchase of an adjacent building with additional land at the strategically important Oberentfelden site. The debt ratio increased to 2.7x and was therefore above ORIOR's target level of <2.5x as at the reporting date. The equity ratio after goodwill offsetting amounted to 21.1% (31 December 2023: 23.5%).
ORIOR MEDIA RELEASE | 21 August 2024
1
ORIOR segments
ORIOR's Convenience segment, with its Fredag, Le Patron, Pastinella and Biotta competence centres, generated net sales of CHF 104.7 million, (H1 2023: CHF 109.8 million), corresponding to a decline of -4.6%. The lack of export sales of plant-based products had a significant impact in this area. Additionally, the traditional retail channel was unable to match the previous year's level. On the other hand, the food service channel posted positive growth. In particular thanks to customised solutions for food service companies and established product ranges from Fredag and Le Patron as well as fresh Biotta juices and smoothies. The performance of the pasta range for the gastronomy sector and the successful expansion of the al-dente pasta range in the retail channel were also pleasing.
The ORIOR Refinement segment, with the Rapelli, Albert Spiess and Möfag competence centres, increased net sales by +1.6% to CHF 121.3 million (H1 2023: CHF 119.3 million). The sales performance of the retail channel was a positive highlight thanks to rising sales of cooked and smoked specialities as well as cost pass-throughs. The food service channel was not quite able to reach the previous year's level, due in large part to a downturn in sales of grill specialities from Rapelli as a result of poor weather.
The ORIOR International segment, comprising the Culinor and Casualfood competence centres and Biotta's sister company Gesa, as well as the slicing, packaging and distribution platform Spiess Europe, grew its net sales by +5% to CHF 98.9 million compared with the same period in the previous year (H1 2023: CHF 94.2 million). Organic growth was a very good 7.6%, while the exchange rate effect was -2.6%. The main driver was Culinor's continued satisfying growth in retail and food service, driven especially by new launches of innovative product lines. Casualfood's sales performance was also impressive, thanks to rising passenger numbers, the opening of new outlets, and cost pass-throughs. Gesa once again succeeded in surpassing its already high sales level, and Spiess Europe also recorded increased sales.
The ORIOR Responsibility
The sixth Sustainability Report was published in accordance with the GRI (Global Reporting Initiative) and in compliance with the legal requirements relating to due diligence and non-financial reporting and was approved by the Annual General Meeting with a very high acceptance rate. This is the first consolidated Sustainability Report that ORIOR has published for the entire Group. The current Sustainability Strategy covers ORIOR's Swiss competence centres and runs until 2025. Work on the Sustainability Strategy 2030 was started early in order to widen our sustainability ambitions to encompass the entire Group and to include the new, mandatory requirements such as the double materiality analysis.
ORIOR Group key figures - First-half 2024
in kCHF
Jan - Jun 2024
∆ in %
Jan - Jun 2023
Net sales
313 987
+0.6%
312 124
EBITDA
26 594
-12.8%
30 493
as % of net sales
8.5%
9.8%
EBIT
12 795
-23.7%
16 774
as % of net sales
4.1%
5.4%
Net profit for the period attributable to ORIOR AG shareholders
9 408
-27.1%
12 901
as % of net sales
3.0%
4.1%
Cash flow from operating activities
15 718
-16.5%
18 832
Net debt/EBITDA ratio
2.69x
2.18x
Equity ratio
21.1%
21.4%
ROCE
10.9%
15.0%
Stock market capitalisation as at 30.06.
364 411
500 494
Average number of employees (FTE)
2 183
2 086
ORIOR MEDIA RELEASE | 21 August 2024
2
Outlook
In the second half of the year, we expect profitability to improve significantly compared with the first half and continued moderate organic growth. We anticipate the International segment will once again perform well, and the Convenience segment is also forecast to experience modest growth. The Refinement segment is unlikely to reach the previous year's level in H2. The expected mix shift, the seasonally stronger H2, and the efficiency enhancement measures we have introduced (including structural adjustments and cost reduc- tions) will have a positive impact on profitability. The initial adjustments implemented as a result of the comprehensive product portfolio analysis will lead to slightly lower sales, but also to improved profitability in the medium term. Based on this, guidance for the current year has been revised slightly downwards to organic sales growth of 0.5-1.5% (previously: 1.5-2.5%) and an EBITDA margin of 9.0-9.3% (previously: 9.3-9.5%).
Guidance 2024
Guidance 2024*
2023
Net sales
CHF 646 to 653 million
CHF 643 million
EBITDA margin
9.0 to 9.3%
9.2%
Tax ratio
15 to 19%
16.8%
Operational CAPEX
CHF 18 to 22 million.
CHF 19.9 million.
Strategic CAPEX (site development)
CHF 30 to 34 million
* at constant exchange rates
ORIOR 2030 Strategy
In view of the changing overall conditions, the five-year planning was initiated ahead of time in spring 2024. This includes an in-depth revision of the business and product portfolio and the five strategic pillars as well as the ambitions defined within it. An update on ORIOR's site development is also part of this, with the aim of boosting profitability. The site development projects are planned in such a way that the communicated target figures - debt ratio of <2.5x; short-term overruns up to an upper limit of max. 3.0x - can be met. The dividend strategy with at least a constant absolute dividend per share will be maintained.
>>> The ORIOR 2030 Strategy including site development will be presented in Zurich on 3 December 2024.
Changes to the Executive Committee: Sacha D. Gerber to become new CFO of the ORIOR Group
Andreas Lindner, CFO of the ORIOR Group, will be leaving the Company at the beginning of 2025 as previously announced. The Board of Directors has appointed Sacha D. Gerber as CFO and member of the Executive Committee of ORIOR AG. Sacha D. Gerber possesses many years of experience as a CFO in various industrial and food companies (Swatch Group, Hero, Calida Group, and Emmi Group). Gerber will join the Company on 1 November 2024, and will assume responsibility as CFO of the ORIOR Group as of 1 January 2025. The current CFO Andreas Lindner will support ORIOR with the annual financial results and exit the Company on 31 January 2025. We would already like to extend our sincere thanks to him for his tireless efforts and valuable contributions to ORIOR.
Our thanks
We are very grateful to the employees of the ORIOR Group, who work hard every day displaying tremendous dedication and true identification with the Group's development. We would also like to thank our customers and business partners for their excellent and reliable collaboration - solid partnerships are very important, especially now when the environment is challenging for everyone. Our sincere thanks also go to our shareholders and consumers for the trust and loyalty they have shown to us.
ORIOR MEDIA RELEASE | 21 August 2024
3
Invitation to video conference
Today, Wednesday 21 August 2024, CEO Daniel Lutz and CFO Andreas Lindner will take us through the 2024 half-year results in a Teams video conference.
Teams video conference in German: Wednesday, 21 August 2024, 10:00am (CEST)
Teams video conference in English: Wednesday, 21 August 2024, 3:00pm (CEST)
Please contact us so that we can provide you with the access details.
Download-Links
Contact
Milena Mathiuet, Chief Corporate Affairs Officer, Telephone +41 44 308 65 13, email: [email protected]
Investor agenda
3 December 2024: Investors' Event, presentation of the ORIOR 2030 Strategy, Zurich
5 March 2025: Publication of 2024 financial results and Annual Report
21 May 2025: Annual General Meeting of ORIOR AG
ORIOR - Excellence in Food
ORIOR is an internationally active Swiss food and beverage group. It comprises companies with strong regional roots, well-known brands and product ranges that maintain leading positions in growing niche markets in Switzerland and abroad. This decentralised business model allows ORIOR's individual companies to live their own culture and identity tailored to their employees and customers, as well as to create original product, brand and concept worlds. What unites them all is their passion for culinary arts and craftsmanship, a spirit of innovation that is attuned to trends and customer needs, bold entrepreneurship, and strong, shared values.
Our leadership concept combines the ORIOR Group's strategic outlook and actions with the competence centres' high degree of autonomy. The "ORIOR Strategy 2025", with its strategic pillars, and Group-wide key policy initiatives (such as the forward-looking "ORIOR New Normal", the intradisciplinary "ORIOR Champion Model" and the interdivisional "ORIOR Bridge-building") are central success factors for continuously creating value for all of our stakeholders.
Motivated employees who enjoy their work and take responsibility for themselves and their tasks are our key to achieving extraordinary things. We strive to be unique and offer the utmost in quality so that we can continue to offer enjoyable experiences that surprise and delight our consumers. This is why our vision is Excellence in Food.
ORIOR is listed on the SIX Swiss Exchange (ORON, ISIN CH011 1677 362, LEI 5067 0020 I84Z A17K9522). Additional information available at www.orior.ch.
Note to performance measures
ORIOR uses alternative performance measures in this media release which are not defined by Swiss GAAP FER. These measures provide useful and relevant information regarding the operative and financial performance of the Group. The document "Alternative Performance Measures Half Year 2024", which is available at https://orior.ch/en/financial-reports, defines these alternative performance measures.
ORIOR MEDIA RELEASE | 21 August 2024
4
Disclaimer
Orior AG published this content on 21 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 21, 2024 at 04:04:07 UTC.