Chat with Filing

Ask questions about this document
Please log in or register to use the chat feature. Please register first.
IR - Press release - Half Year Report ORIOR AG

Company: Orior AG Date: 2011-08-16 Language: English Register to download
Loading document preview...
Document Preview Not Available

The file type (.html) cannot be displayed directly here.
Open Original File
Error loading document preview. Please try the 'Open Original File' link.
You're One Click Away From The Full Filing

Instantly access this document—and 2.8M more—for free. Select your preferred method:
Continue with Google Continue with Microsoft Continue with Facebook Continue with Amazon
 News Details

Ad-hoc | 16 August 2011 07:00

#   

Press release – Half Year Report ORIOR AG

**Orior AG  / Key word(s): Half Year Results**

16.08.2011 07:00

Release of an ad hoc announcement pursuant to Art. 72 KR
---------------------------------------------------------------------------

Press release - Half Year Report ORIOR AG

Solid first half with strong profit growth 

  - Revenues of CHF 244.1 million (-1%) 
  - Steady development of EBITDA and EBIT
  - Profit for the period up 31.9% to CHF 13.6 million
  - Targeted growth initiatives lay the groundwork for profitable growth
  - Business expected to remain stable going forward
  
Zurich, 16 August 2011 - ORIOR AG, a company focused on substance and
continuity, has performed well in challenging market conditions and remains
on track. Although net revenues of CHF 244.1 million for the first six
months were slightly below the year-back figure (CHF 246.7 million), the
net profit of CHF 13.6 million for the first half of 2011 is significantly
higher than a year previously (CHF 10.3 million). The outlook for the
second half of the year is also positive.

As expected, sales in the Swiss food retailing sector only grew modestly in
the first half of 2011. Despite lively economic activity, the market felt
the effect of Swiss consumers' stagnating purchasing power. Slightly higher
wages meant they had more money, but most of the extra income was absorbed
by rising insurance and health insurance premiums and the increase in VAT. 
These factors, plus uncertainties relating to the possible negative effects
of the strong franc on the Swiss economy, resulted in a slight downturn in
consumer sentiment.  Since the second quarter of the year retailers
throughout the country, but especially in Switzerland's border regions,
have felt the negative effects of cross-border shopping.

Confirmation of previous year's good results and clear improvement in
profit for the period

In this challenging environment, the first half-year was stable in terms of
revenues and pleasing in terms of earnings. Despite a further increase in
price pressure, EBITDA (earnings before interest, tax, depreciation and
amortisation) was 1.7% higher at CHF 26.6 million. This gives an EBITDA
margin of 10.9%. Revenues were down 1%, or CHF 2.6 million, on the
year-back figure at CHF 244.1 million. Despite revenue growth in various
product categories, it was not possible to make up for negative inflation,
slightly lower volumes in the catering sector and the postponement of
certain sales activities. EBIT was the same as a year previously at CHF
19.3 million. The company achieved a very good increase of 31.9% in profit
for the period (CHF 13.6 million). This pleasing result can be attributed
to the improved operating performance and the much lower level of net debt.

Segments make further efficiency gains

Refinement, still the biggest segment, posted pleasing growth of 4.7% to
CHF 152.5 million. ORIOR's product innovations are meeting the needs of
customers and the market. Moreover, the meat consumption is increasing
slightly. Despite volatile raw materials prices, intense competition, and
slightly negative inflation, this segment increased its EBITDA margin from
9.1%, or CHF 13.2 million, to 9.3% or CHF 14.1 million. The Convenience
segment saw a temporary decline in revenues, but increased its
profitability. With revenues of CHF 92.1 million (- 7.7%), the EBITDA
margin reached 15.5% (previous year 14.9%). The lower level of revenues
compared with the record year of 2010 can be partly attributed to the
expiration of a wholesale supply contract, which could not be offset
completely by new orders in this attractive growth market. The Corporate,
Export and Logistics segment's international activities achieved a pleasing
rise in revenues (+27.1%), but the euro exchange rate had a major negative
effect on the margin. Substantial investments were made in the
modernisation of the logistics company Lineafresca with the aim of making
long-term efficiency gains. As expected, EBITDA was slightly negative at
CHF - 1.9 million.

Segments strengthened through targeted acquisitions 

ORIOR's growth policy includes augmenting the existing range by rounding
out the portfolio with appropriate (small) acquisitions. ORIOR is in a
position to integrate such companies quickly and efficiently into the
organisation without compromising their brand personality. In January,
Rapelli bought the family-run firm Salumeria Keller SA, which is known
throughout Switzerland for its authentic hand-made Ticinese specialities.
Keller SA's 'Val Mara' brand complements ORIOR's range perfectly and opens
up some new and interesting distribution channels. In April Fredag was able
to acquire the family-owned firm Bernatur, which specialises in tofu
production and which was looking for a solution to its succession issues.
Fredag has already distributed some Bernatur products in the past. The
acquisition allows ORIOR to continue the development of its market position
in the vegetarian products (meat substitute) sector. It was decided for
strategic reasons to integrate manufacturing expertise for tofu, which is
important to many of ORIOR'S convenience products, into the company itself.

Growth initiatives create further momentum

Organic growth is important to ORIOR. The Swiss food retail trade will not
be able to generate much growth, if any, for the next few years. We have to
assume, in fact, that the Swiss food sector will continue to experience
negative inflation.  ORIOR aims to grow slightly faster than the market in
its home and main market, and expects to achieve average revenue growth of
1 - 2%. ORIOR's most important growth drivers come from convenience food
innovations, especially in the vegetarian specialities sector, as well as
from the systematic roll-out of lunch menu and other services, and from
innovative new concepts for the catering industry. This strategy is
supported by appropriate augmentations (small acquisitions) in Switzerland.
Partnerships and acquisitions within clearly defined parameters abroad are
used to strengthen ORIOR's market position still further.

A stable second six months expected

Barring any unforeseeable developments, the second half of the year should
deliver solid revenues and earnings at around the previous year's level.
Despite the likelihood of slightly higher raw materials prices, the
competitive situation will probably prevent ORIOR from increasing its sales
prices. However, ongoing value creation initiatives and lower financing
costs should have a balancing, or even positive, effect on the costs side.
Growth-promoting measures, especially the additions ORIOR has made to the
portfolio and possible cooperation agreements, will have an influence on
business performance from 2012 on.

Contact:

ORIOR AG                      For questions relating to the Board of
                              Directors:
Remo Hansen   , CEO           Rolf U. Sutter, 
                              Chairman of the Board of Directors
Tel. +41 44 308 65 00         Tel. +41 44 308 65 00
E-mail: investors@orior.ch    E-mail: info@orior.ch
 

Half-year report

The half-year report for 2011 can be downloaded now at the following link:
http://en.investor.orior.ch/Financial-publications

Telephone conference call on the half-year report 
This Tuesday, 16 August 2011, at 10:00 a.m., Remo Hansen (CEO) and Hélène
Weber-Dubi (CFO) will hold a conference call in German to discuss the
results for the first half of 2011. You are invited to participate by
dialing the following number:

Telephone: +41 58 262 07 11

Give your name and company and then enter the following pin code:

437865

We kindly request that you dial into the conference number 5 to 10 minutes
before the presentation begins.

The presentation on the half-year report which will be discussed at today's
conference call can be downloaded now at the following link:
http://en.investor.orior.ch/Praesentationen

Dates for investors:
Investors' day: 23 September 2011
FY 2011: 23 February 2012
AGM: 27 March 2012
HY 2012: 23  August 2012



Key Figures for ORIOR Group - First Half 2011:

in kCHF
                                                  H1 2011  Δ in %  H1 2010
Revenues                                          244,088  -1.0%   246,664
EBITDA                                            26,586   +1.7%   26,147
as % of revenues                                  10.9%            10.6%
EBIT                                              19,320   -0.3%   19,385
as % of revenues                                  7.9%             7.9%
Profit for the period                             13,565   +31.9%  10,281
as % of revenues                                  5.6%             4.2%
Net debt                                          83,863   -5.4%   88,627
Net debt / EBITDA ratio                           1.54x            1.65x
Shareholders' equity                              172,561          153,932
Equity ratio                                      45.2%            40.7%
Total assets                                      381,465          377,792
Earnings per share\*                               CHF              CHF
                                                  2.29             2.11
Avg. number of staff                              1,232            1,251
\*Profit for the period / weighted Ø number of
outstanding shares
 
 

  

About ORIOR:

 ORIOR, a Swiss food group with a long tradition, achieved revenues of CHF
506 million in 2010 with around 1,300 employees. ORIOR specializes in the
production and distribution of fresh convenience foods, including
vegetarian delicatessen products and refined meats. With its innovative
products and its brands Rapelli, Ticinella, Spiess, Le Patron, Pastinella,
Fredag and Natur Gourmet, it occupies significant positions in several
fast-growing niches in the Swiss retail and food service markets, as well
as in selected sales channels in neighbouring countries. www.orior.ch.

 

Forward-looking statement

Information in this release may involve guidance, expectations, beliefs,
plans, intentions or strategies regarding the future. These forward-looking
statements involve risks and uncertainties. All forward-looking statements
included in this release are based on information available to ORIOR AG as
of the date of this release, and we assume no duty to update any such
forward-looking statements. The forward-looking statements in this release
are not guarantees of future performance and actual results could differ
materially from our current expectations. Numerous factors could cause or
contribute to such differences. Factors that could affect the Company's
forward-looking statements include, among other things: national and global
GDP trends; changes in regulation relevant to the food business; intense
competition in the markets in which the Company operates; integration of
acquired companies; changes in the Company's ability to attract and retain
qualified internal and external personnel or clients; the potential impact
of disruptions related to IT; any adverse developments in existing
commercial relationships, disputes or legal and tax proceedings.

 


16.08.2011 News transmitted by EquityStory AG. 
The issuer is responsible for the contents of the release.

EquityStory publishes regulatory releases, media releases on the capital 
market and press releases.
The EquityStory Group distributes authentic and real-time financial news 
for over 1'300 listed companies. 
The Swiss news archive can be found at www.equitystory.ch/news

---------------------------------------------------------------------------
 
Language:               English
Company:                Orior AG
                        Dufourstrasse 43
                        8008 Zürich
                        Switzerland
Phone:                  +41 44 308 6500
Fax:                    +41 44 308 6505
E-mail:                 info@orior.ch
Internet:               www.orior.ch
ISIN:                   CH0111677362
Swiss Security Number:  A1CXAY
Listed:                 Freiverkehr in Stuttgart; Open Market in Frankfurt;
                        SIX
 
End of Announcement                             EquityStory News-Service
 
---------------------------------------------------------------------------