Orior, the Swiss maker of fresh meats and pasta, saw first-half revenue and profit increase helped by last year’s acquisition of Culinor Food Group that expanded the company’s presence outside its domestic market.
However, Orior met with challenges, particularly in Switzerland where stiff competition and market consolidation cut sales. In an earnings statement today (22 August), the company said revenue rose more than 17% to CHF281m (US$291m) in the six months through June from a year earlier, and net profit climbed 22% to CHF14.8m.
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EBITDA as a percentage of revenues rose 22% in the first half to CHF27.7m and EBIT climbed 20% to CHF18.5m.
The company, which has brands include Rapelli, Ticinella and Pastinella, said Orior International is growing thanks to the purchase of Culinor Food Group in 2016, leading to new sales channels and innovations to deliver “faster-than-expected growth”. Segment revenue amounted to CHF58.6m, while EBITDA came in at CHF5.1m for an 8.6% margin. In Switzerland, revenue dropped 3.8%, with postponed sales and promotion campaigns cited as contributing factors.
In the convenience segment, Orior said it did not meet all expectations, primarily due to competition and insourcing by retail customers. Revenue declined 5.8% to CHF89.9m but the EBITDA margin rose 70 basis points to 13.5%.
While revenue in Orior’s refinement division – which takes in deli meat products – fell 3.4% to CHF139.9m, the company said the segment outperformed the general market in most product categories, with the EBITDA margin climbing 35 basis points to 7.6%.
In terms of the outlook for the second half, Orior said growth potential will stem from attractive new products, concepts, packaging designs and innovation.
