- Oops!Something went wrong.Please try again later.
ORIOR AG / Key word(s): Half Year Results/Sustainability
Revenues increased 1.6% to CHF 291.9 million, primarily driven by the strong performance of the Convenience segment.
ORIOR Group generated revenues of CHF 291.9 million in the first half of 2021, an increase of 1.6% from the prior-year period (CHF 287.4 million). Organic growth accounted for 0.9% of the overall increase and currency translation had an effect of 0.7%. Primary drivers were the Convenience segment thanks to the growth of product specialities in the trending categories of organic, veggie/vegan, fresh pasta and regionality, Culinor Food Group and, from June 2021 onward, Casualfood and the food service business. These positive drivers were stronger than expected. Meanwhile business in the Refinement segment was weaker than anticipated. This is attributed to the ongoing volatility in commodity prices, the tight supply of high-quality raw materials and unforeseen difficulties in an IT system migration project.
The Groupʼs gross profit margin increased 84 basis points to 44.5%, which reflects first and foremost the good performance of the Convenience segment with its higher gross margins. EBITDA rose sharply from CHF 23.5 million in the prior-year period to CHF 31.1 million for the first half of 2021. As a result, the EBITDA margin also expanded significantly from 8.2% to a good 10.6%. The primary drivers of this strong improvement in profitability are the fast sales growth of high-margin product lines - above all veggie/vegan - enduring higher levels of cost and process flexibility, Casualfoodʼs new financial basis and corona-related aid and support payments. This good result is also reflected at the EBIT line, which amounted to CHF 17.1 million (H1 2020: CHF 10.0 million), and the bottom line, which amounted to CHF 13.5 million compared to CHF 8.3 million in the prior-year period.
Cash flow from operating activities showed a significantly improvement to CHF 27.0 million (H1 2020: CHF 9.6 million) thanks in particular to the significant improvement in operating results and due to insurance claims that were booked in the first half of 2020 but not paid out until the second half of 2020. Consequently, the cash conversion ratio rose to a very solid 86.9%. This development was a key factor behind the reduction in the debt ratio to 2.44 x, bringing it back into line with ORIORʼs target of < 2.5 x.
The ORIOR Refinement segment with the Rapelli, Albert Spiess and Möfag centres of competence reported a -5.1% decline in revenues to CHF 125.1 million. The main reasons for this year-on-year decline are a high comparison base (H120: +3.7%, FY20: +3.3% organic growth), the tight supply of raw materials, product line adjustments, and unforeseen difficulties in implementing a new IT system that temporarily slowed down certain processes and led to some logistical challenges. Food service accounts for a smaller percentage of overall Refinement revenues, so developments in this market do not have the same impact on Refinement as they do in the Convenience segment. One segment highlight of the first half - besides Möfag's solid performance - was the Albert Spiess online shop, which continued to generate pleasing sales after the Christmas and New Year's season thanks to its attractive gift arrangements featuring Bündner specialities.
The ORIOR International segment consisting of the Culinor Food Group and Casualfood competence centres, Biottaʼs Gesa subsidiary and Spiess Europe, a picking, packing and distribution platform for Group products, reported a marginal decline in revenues of 0.1% to CHF 74.7 million and thus held its revenues at the level from the first half of 2020 despite persisting challenging corona-related impacts. A direct comparison between the two periods is distorted by the very good course of business during the first three months of the prior-year period, before the coronavirus pandemic brought the food travel industry to a standstill. Organic growth for the period under review stood at -2.9% and exchange-rate fluctuations had a positive effect of +2.7%. Attention is drawn to positive developments at the Culinor Food Group, driven by its expanded customer portfolio since autumn 2020, the good performance of its home-delivery business and the new listing of fresh meal concepts. Gesa and Spiess Europe showed very pleasing developments during the period under review. Both are active in steadily growing trendy categories and not only benefited from the underlying growth, but also clearly outgrew the overall market. Casualfood has been severely impacted by the pandemic and business activity remained at sharply lower levels during the first half of 2021, but an increasingly positive trend has been observed since June. The new Smartseller store (an integrated food & beverage, convenience store and duty free concept developed in a joint venture with Heinemann) in Ljubljana was inaugurated on 1 July 2021. Thanks to its new financial basis, Casualfood is on track for a sustained improvement in profitability. Moreover, German government corona-related aid and support payments cushioned the months-long shutdown of its business in the wake of the pandemic.
Expansion of production capacity for plant-based specialities started
ESG - 3rd Sustainability Report, climate goal achieved, revised Code of Conduct, CDP disclosure
ORIOR - Excellence in Food
Our management approach combines strategic thought and action at Group level with a high degree of autonomy at each centre of competence. The ORIOR 2025 Strategy with its strategic pillars and the Group-wide key strategic initiatives - the ground-breaking 'ORIOR New Normal', the intradisciplinary 'ORIOR Champion Model' and the synergistic 'ORIOR Bridge-building' initiative - are critical success factors that will ensure steady value creation for all stakeholders.
Motivated employees who enjoy what they do and who assume responsibility for themselves and their work are the catalyst for unlocking the extraordinary. We embrace uniqueness and premium quality in our quest to surprise and thrill our consumers time and again with delightful and delicious creations. Our vision is nothing less than Excellence in Food.
ORIOR is listed on the SIX Swiss Exchange (ORON, ISIN CH0111677362, LEI 5067 0020 I84Z A17K 9522). Further information is available at www.orior.ch.
Note to performance measures
End of ad hoc announcement
+41 44 308 6500
+41 44 308 6505
SIX Swiss Exchange
EQS News ID:
End of Announcement
EQS Group News Service