Orior AG's stock climbed 3.4% on Wednesday following the release of preliminary 2025 figures that aligned with analyst expectations and showed a modest improvement in the group's balance sheet.
The Swiss food manufacturer recorded organic sales of CHF623 million, a 1.5% decline year-on-year, which nonetheless came in slightly above consensus forecasts of CHF620 million. Management indicated that adjusted EBITDA margin will sit within the guided range of 5.9% to 6.3%, implying adjusted EBITDA of approximately CHF37-39 million, consistent with market expectations.
On the balance sheet front, Orior reported a reduction in net debt of about CHF28 million compared with the prior year, bringing net debt down to CHF153 million. The company attributed this improvement to a combination of sale-and-leaseback transactions on commercial properties, the sale of a non-operational parcel of land, and operating cash generation.
Despite the reduction, leverage remains a concern - reported net debt to adjusted EBITDA sits in the vicinity of 3.9 to 4.2 times. That level of leverage indicates continued pressure on financial flexibility, a point that market participants will likely monitor closely as the company works through strategic options.
Market attention is also focused on the potential divestment of Culinor, a transaction that management expects could be signed by the first quarter of 2026. Should that sale proceed as anticipated, it would provide additional relief to the company’s balance sheet and could materially affect leverage, though details and timing remain subject to confirmation.
Orior's operations are concentrated in convenience and refinement products for retail and food service customers. Approximately 70% of the group's revenues are generated in Switzerland, with further exposure across Germany, Belgium, France, and the Netherlands. The geographic and channel mix is relevant to assessing revenue stability and potential recovery paths as the group seeks to manage both margins and net debt.
Contextual note: The results were described as in line with expectations across top-line organic sales and adjusted EBITDA margin guidance, while the company took tangible steps to reduce net debt through asset monetizations and cash generation. Nevertheless, reported leverage remains elevated and the anticipated Culinor transaction is a key item for future balance-sheet improvement.