Orior has outlined a five-year strategy for the Switzerland-based food producer, which as well as new financial targets includes a provision for acquisitions.

The Orior 2025 Strategy, which has been delayed by the pandemic features shorter-term goals around food trends to reflect the “new normal” from the coronavirus pandemic and includes a decentralised business model for the Zurich-headquartered company’s individual operations.

With a portfolio ranging from meat products, seafood, pasta and ready-meals to meat alternatives, Orior said it “remains open to smaller bolt-on transactions, acquisitions and corporate alliances”, within its M&A strategy.

“Taking into consideration the stated goal of sustained improvement in balance sheet quality, the focus here – at least during the initial phase of the five-year strategy period – will be on smaller transactions that strengthen and/or round out the core business of the existing competence centres,” Orior said.

And having seen organic revenues fall 1.9% last year, compared to a 2.1% increase in 2018, the owner of the Happy Vegi Butcher plant-based brand has laid out an objective to achieve annual growth rates of 2% to 4% through the course of the five-year period.

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By GlobalData

Orior is also targeting “an annual absolute increase” in EBITDA and an associated margin in excess of 10%. It is also aiming for a net debt/EBITDA ratio of less than 2.5 times and a “steady increase in the absolute dividend”. 

Last year, Orior posted sales of CHF596.4m (US$651.2m), an increase on a reported basis of 3.4%, EBITDA of CHF61m, which was up 4.2%, and a margin of 10.2%. It paid a dividend of CHF2.32 a share. And the company’s net debt/EBITDA ratio stood at 2.47 times.

“Ultimately, a financially strong and resilient foundation provides the best possible means of ensuring operational agility,” Orior said, adding that “sustainability is being anchored more deeply throughout the company”.

It continued: “In its overarching goals, Orior affirms its commitment to sustainable and profitable growth as well as to its unique business model with a decentralised corporate structure. Orior aims to thrill consumers with its power of innovation, celebrated across a diverse range of brands, concepts and product worlds. ORIOR embraces clearly defined, responsible management roles, entrepreneurship, and strong values.”