Orior sales down but operating performance stronger

Orior sales down but operating performance stronger

Swiss food group Orior booked a mixed first half, with lower sales and net profit but an increase in operating profit.

The convenience food maker said sales decreased as a result of the strong Swiss franc and food deflation. In a "shrinking market", Orior stressed it "maintained" its volume and grew market share. Revenue fell 4.6% to CHF241.5m (US$250m).

The group was nevertheless able to improve operating margin by 66 basis points to 6.2%, thanks to "favourable" purchasing conditions and operational efficiencies. EBIT rose 6.9% to CHF15m, Orior reported.

Higher financial expenses and taxes pushed Orior's net profit down 2/7% to CHF10.3m.

Looking to the full-year, Orior said: "Orior expects operating conditions to remain challenging in the second half of 2015, so revenues are likely to remain under pressure. On the other hand, the favourable conditions for purchasing raw materials are expected to continue, which should have a positive effect."