Orior, the Switzerland-based food and drinks group, is working on “far-reaching measures” to improve its profitability and lower its debt.
The company managed to increase its sales last year but fell into the red and saw its debt pile rise. Profits were hit by weak growth in sales, high pork prices and a “valuation discrepancy” regarding the company’s Albert Spiess meats unit.
In April, Orior said board member Monika Friedli-Walser would take on “operational responsibility” of the company.
The group said yesterday (17 June) it was undertaking a series of measures to “strengthen the company’s profitability”.
Orior wants to “optimise the structures” of the company, moves that include decentralising functions to its business units, leaving “corporate” departments such as finance, HR and IT run centrally.
These moves have also seen the group remove its “supply chain excellence” team. All business-unit CEOs, meanwhile, will report to the company chief executive.
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By GlobalDataAsked what impact the changes will have on jobs, an Orior spokesperson said the work had yet to be completed.
The company is also looking to review its capital-investment plans and, more broadly, is weighing up possible changes to its production network.
Orior wants to offload a clutch of factory buildings that are no longer in use on production sites. It is also analysing whether it can sell some of its manufacturing plants and lease them back, the spokesperson said.
Asked if Orior would look to sell any of its brands, the spokesperson added: “No, not the moment but – and I think that’s also important with the situation we are in – the board of directors is analysing the full Orior group and trying to figure out is this the right structure we need to go into a successful future for Orior as a whole.”
Orior generated net sales of SFr642.1m ($786m) in 2024, versus SFr643.1m a year earlier. After adjusting for exchange rates, net sales rose 0.5% on an organic basis.
The company’s convenience-food business, which accounts for roughly a third of sales, declined year on year.
EBITDA reached SFr22.5m, compared to SFr53.3m in 2023. Orior booked a loss at an EBIT level of SFr31.9m due to factors including the lower EBITDA, an impairment of the Albert Spiess business and high pork prices. The company said in March it would sell some Albert Spiess assets to local animal protein processor Mérat. The group recorded a net loss of SFr35.2m for 2024, versus a profit of SFr19.9m in 2023.
