Initial commentary on coronavirus impact
The extraordinary circumstances the world is currently facing as a result of the coronavirus pose challenges at every level and in every areas. As a food and beverage company, ORIOR is part of the national food supply network and is doing everything in its power to perform its duties as best it can. All production sites are operating at a high rate of capacity and under heightened safety and protective measures. A special thanks is extended to all employees during this unprecedented time, particularly to those who work in production. They are working very hard under challenging conditions to maintain our high levels of supply readiness.
Due to the measures imposed by the Swiss government, demand for food products in the retail channel, and thus for the product categories ORIOR supplies to retailers, has increased sharply. Meanwhile sales with restaurants and food service providers in general have declined partly dramatically. From today’s standpoint, the decline in these sales channels will not be completely offset in the near term by the increase in sales with food retailers. The situation in the Benelux is similar. Casualfood, the food service to go specialist with food islands in high-frequency locations, had to close most of its points of sale in airports. The employees affected by these shutdowns are receiving short-time work allowances from the government. Very few of the employees in Switzerland and Belgium are on short-time work.
Reliable projections of the course of business in 2020 are not possible due to the current uncertainties. Our priorities are keeping employees safe and healthy and maintaining a high level of supply readiness.
The previous guidance for fiscal 2020 can for now not be confirmed due to the uncertainty regarding future circumstances. No changes have been made to our mid- to long-term goals nor to the dividend policy that has been in place since the IPO, thanks to the Group’s broader footprint and strategic positioning.
We are doing everything in our power every day to manage the current crisis and contribute our part. In closing, we wish you and your loved ones good health.
Milena Mathiuet, Head of Corporate Communications & Investor Relations
Telephone +41 44 308 65 13, email: email@example.com
4 June 2020: Annual General Meeting of Shareholders
19 August 2020: Publication of half-year results for 2020