Swiss food and beverage group Orior has launched a “far-reaching” restructuring programme aimed at reducing debt.
The announcement came as the company reported lower first-half sales and profits.
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In the statement released alongside the results, Orior said the measures include a review of “all strategic options” for Belgium-based Culinor Food Group, including a potential sale. The company is also lining up a reorganisation of its Albert Spiess unit and a streamlining of group structures.
Orior said its current position is sound in principle but does require “clear sharpening”, with a “stronger focus on the Swiss market”.
The group acknowledged expected synergies since it acquired Culinor in 2016 have not materialised.
Meanwhile, over the next year, Albert Spiess will undergo a “significant” reshaping.
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By GlobalDataThe unit has been “insufficiently profitable for a long time” and “needs to be realigned”, the group said.
The manufacturing of all products without a direct link to the Graubünden region in eastern Switzerland will be transferred to Rapelli in Stabio, leaving only a minimal operation at the Schiers site.
The move will directly affect around 90 of the 130 employees in Schiers, with a social plan being prepared to mitigate the impact, Orior said, adding that the Ganda direct shop in Landquart is also set to close.
Orior said: “This planned reorganisation is both drastic and difficult. However, it appears necessary in order to preserve the Albert Spiess core product group and brand and return the company to a sustainable economic level.”
First-half net sales were down 2.9% at Sfr304.9m ($378.05m). EBIT plunged 55.2% to Sfr4.1m, while net profit attributable to shareholders dropped 78.9% to Sfr1.3m.
Net debt was reduced to Sfr173.3m from Sfr181.4m at year-end, though leverage remains elevated at 5.2x adjusted EBITDA, more than double the group’s target of below 2.5x, the group said.
The group will also simplify its legal and organisational structures to reduce costs and boost efficiency, including merging Albert Spiess AG and Rapelli SA.
Debt reduction will be accelerated through property disposals and sale-and-leaseback transactions, with a “high” double-digit million reduction targeted within 18 months.
