Orior (ORON) H2 2023 earnings summary

Executive summary

• Net sales increased 1.0% to CHF 643.1 million; organic growth was 2.1% and the currency effect was -1.1%.

• EBITDA fell to CHF 59.2 million from CHF 64.1 million, with margin down to 9.2% from 10.1%, amid cost pressure, weaker volumes and product-mix shifts.

Financial highlights

• Gross profit rose 5.6% to CHF 308.9 million; gross margin increased 210 bps to 48.0%.

• EBIT declined 15.3% to CHF 32.1 million; EBIT margin fell 96 bps to 5.0%, reflecting lower EBITDA and higher depreciation and amortisation.

• Profit before taxes was CHF 29.5 million, down 16.7%; net profit attributable to shareholders fell 17.8% to CHF 24.8 million.

Outlook and guidance

• FY 2024 organic net sales growth of 1.5–2.5% expected; sales guidance is CHF 652.7–659.2 million at constant exchange rates.

• FY 2024 EBITDA margin guidance is 9.3–9.5%; absolute EBITDA and margin are expected to increase, while the 10% margin ambition may take two to three years to regain.

• Growth expected across segments, led by International; priorities include profitability, efficiency, innovation and further cost pass-throughs.

• FY 2024 operational CAPEX guidance is CHF 18–22 million and strategic site-development CAPEX is CHF 30–34 million; tax ratio guidance is 15–19%.