Statement by ORIORZurich, 21 June 2019
With regard to the current events and media reports relating to the present outbreak of swine fever in China and the resulting uncertainty in the market, ORIOR would like to comment as follows.
Swiss pork is not affected by the compensation purchases from China and thus by the price increase in Europe due to increasing demand. ORIOR almost exclusively uses Swiss pork for its pork specialities (salami, raw ham, salsiz, etc.). The price of pork in Switzerland continues to be considerably higher than in other European countries, which makes export to China of the meat cuts that are of significance to ORIOR highly unlikely. Accordingly, the impact of swine fever on ORIOR is currently very low. For the first half of 2019, ORIOR expects a healthy growth in both the gross margin and EBITDA (absolute and as a percentage), with a slight improvement compared to the same period in the previous year and further potential for the second half of 2019, too. This outlook is supported on the one hand by our strategically direction-setting positioning with broad diversification, including new business models and product categories, and on the other by our consistent focus on sustainable margins. Revenues will increase in absolute terms, whereby due to our commitment to sustainable margins, business dealings in Switzerland that have become unprofitable will be discontinued and a marginal decline in organic growth of 1–2% will be taken into account.