Orior, the Switzerland-based food and drinks group, is actively implementing “far-reaching measures” aimed at improving profitability and reducing debt.
Despite achieving increased sales last year, the company unfortunately fell into the red and witnessed a rise in its debt levels. Profits suffered due to slow growth in sales, high pork prices, and a “valuation discrepancy” concerning its Albert Spiess meats unit.
In April, Orior announced that board member Monika Friedli-Walser would assume “operational responsibility” of the company.
The group declared yesterday, June 17, that it is initiating several measures designed to “strengthen the company’s profitability.”
As part of its strategy, Orior aims to “optimise the structures” within the company. This involves decentralising certain functions to its business units while centralising “corporate” departments such as finance, HR, and IT.
Moreover, these changes have led to the disbandment of the “supply chain excellence” team. All business-unit CEOs will now report directly to the company CEO.
When questioned about the potential effects on employment, an Orior spokesperson indicated that the work is still in progress.
Additionally, the company is reviewing its capital-investment plans and is considering modifications to its production network.
Orior seeks to divest several factory buildings that are no longer operational at production sites. The company is also evaluating the possibility of selling some manufacturing plants and leasing them back, according to the spokesperson.
In response to inquiries about any potential brand sales, the spokesperson remarked: “No, not at 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 if this is the right structure we need to ensure a successful future for Orior as a whole.”
In 2024, Orior achieved net sales of SFr642.1m ($786m), a slight decline from SFr643.1m the previous year. However, after adjusting for exchange rates, net sales experience a modest increase of 0.5% on an organic basis.
Notably, the company’s convenience-food division, which represents approximately one-third of total sales, saw a year-on-year decline.
EBITDA totaled SFr22.5m, down from SFr53.3m in 2023. Orior reported an EBIT-level loss of SFr31.9m, attributing it to factors such as lower EBITDA, an impairment concerning the Albert Spiess business, and high pork prices. Furthermore, the company mentioned in March its intention to sell certain Albert Spiess assets to local animal protein processor Mérat. Ultimately, the group recorded a net loss of SFr35.2m for 2024, compared to a profit of SFr19.9m in 2023.