Swiss food group Orior reported a 7.1% year-on-year decline in first-half revenue to 283.3 million francs, citing weaker pork prices, Swiss retail disruption and the loss of a Dutch volume contract. Organic sales fell 5.7% in the six months to June 30, the company said on Tuesday.
The adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.8% to 15.5 million francs, though the margin improved slightly to 5.5% from 5.4%. Net profit rose to 4.6 million francs from 1.3 million francs a year earlier.
Net debt increased 7.0% to 162.9 million francs at mid-year, driven by the full-year acquisition of pasta manufacturer Gaetarelli and seasonally lower cash flow. The net-debt-to-adjusted-EBITDA ratio stood at 4.3.
Challenges included a 30% drop in Swiss pork prices, persistent Swiss retail volatility and the exit of a loss-making German rail catering business. Orior offset part of the volume decline through improved gross margins from centralized purchasing and tighter procurement controls, alongside sustained cost discipline.
For the full year, Orior lowered its organic sales guidance to a decline of 6% to 8%, from a previous range of 3% to 6%. The company maintained its adjusted EBITDA margin outlook of 6.3% to 6.6%.
The group cited a difficult operating environment, including prolonged heatwaves that dampened consumer demand, and grill bans amid forest-fire risks that disrupted seasonal sales patterns.
