Orior (ORON) H2 2024 earnings summary

Executive summary

• Organic growth of 0.5% achieved, with net sales slightly down to CHF 642.1 million and adjusted EBITDA margin at 6.2% for 2024.

• Adjusted EBITDA margin declined from 8.3% in 2023 to 6.2%, impacted by one-off adjustments and higher input costs.

• Culinor, Biotta, and Gesa achieved record results; food service channels and innovative products drove growth domestically and internationally.

• Negative impacts included tender losses, higher personnel costs, and loss of major volume orders, particularly in Belgium.

• Measures taken to address tender losses and cost deviations, with focus on stabilizing operations and driving innovation.

Financial highlights

• Net sales: CHF 642.1 million, down -0.2% year-over-year; organic growth +0.5%, currency effect -0.7%.

• Adjusted EBITDA: CHF 39.8 million (6.2% margin), down from 8.3% in 2023; EBITDA: CHF 22.5 million (3.5% margin).

• EBIT: -CHF 31.9 million (-5.0% margin) due to impairment losses and one-off expenses.

• Net profit: -CHF 35.2 million, compared to CHF 19.9 million in 2023.

• Net sales for refinement segment grew 1.3% to CHF 248.8 million; international segment up 2.5% to CHF 203.8 million; convenience segment down 4.7% to CHF 209.5 million.

Outlook and guidance

• 2025 organic growth guidance: -4.0% to -6.0% due to loss of volume order in Belgium and tender losses.

• Adjusted EBITDA margin expected between 6.0% and 6.4% for 2025.

• Management expects to continue restructuring and improvement measures into 2025, with no plans for price cuts and a focus on efficiency.

• CAPEX guidance for 2025: CHF 20–24 million, focusing on existing production sites.