Orsero, more integration with agricultural supply chains. Focus on North America

On the one hand, the future bet, through M&A, on North America. On the other, the push, thanks mainly to the lever of partnerships, towards the integration of food chains. All with a continued focus on quality and value-added products. These are among the priorities of Orsero to support business. Yes, business. The Italian multinational, whose top management the Lettera al Risparmiatore met with, as of today has Europe as the centre of its business (357.2 million turnover in the first quarter of 2025). Revenues - much smaller (EUR 22.4 million) - outside the Old Continent are linked to Mexico (production/export of avocados) and Costa Rica (import support for bananas and pineapples).

Well: the situation is destined - in part - to change. The group aims to establish a direct presence in North America. The objective is to be realised through growth by external lines. Several dossiers are on the table, with the identikit of the potential target distinguished by certain broad characteristics. First of all, the turnover: here the idea is to be in the area of 200 million dollars. The distribution activity - balanced between large-scale distribution and wholesale markets - must then be well diversified in terms of product types. But with a focus on products with added value and that are not already in the company 'catalogue'. In this sense, a business, for example, that is unbalanced on avocados (which Orsero exports from Mexico to the US) is to be excluded. Furthermore, turnarounds are discarded. On the contrary! The Italian group is aiming at an operation that will increase the Ebitda margin. Finally: the timing. Here Orsero gives no indication. Nonetheless - given the propitious moment for strategic and industrial operations in the wake of the weakness of competition from private equity - a move in 2025 itself cannot be ruled out, should the right conditions present themselves. But it is not only a question of greater international articulation. Another priority is to increase the integration of production chains. An example, in this sense, is the recent partnership between Hermanos Fernández Lopez - a Spanish company of the group - and Cooperativas Unidas de la Palma ('Cupalma') in the Canarian plane tree sector. The agreement, on the one hand, allows the Cupalma producers to have the Spanish infrastructure of Orsero at their disposal (from ripening to distribution); and, on the other hand, it allows Orsero itself - together with the consolidation of business relations - to have a higher degree of control over the product and, thus, to continue along the road of value-added supply. The single recent transaction is a plastic demonstration of the objective of increasing the turnover generated by such contexts. To date, revenues attributable to a higher degree of integration in the production chain are around 40% of the total. The objective? To reach - in an ideal environment - around 70% of consolidated sales. The remaining 30% - the subject of so-called trading activities - is, on the other hand, considered the minimum threshold necessary to maintain sufficient flexibility for the business in the face of continuous market volatility.

So far, some suggestions regarding likely shopping and agricultural supply chains. But there is also the commitment to value-added supply. The strategy - initiated some time ago - continues. Not only because of the higher margins and the fact that it allows Orsero to increase the strength and brand awareness, but also because these are sectors that allow for a positive Return on Investment (Roi) and rather quickly. However, the saver - precisely with respect to value-added products such as berries - expresses a doubt. Economic crisis, political uncertainty and lower purchasing power may limit demand for these product categories and thus impact Orsero's business. The company, inviting a deeper analysis, dismisses the concern. Between January and May 2025, the company indicates, the most expensive quality products grew more than the least expensive ones. An example? Berries - characterised by Orsero's price of EUR 12.77 per kilo equivalent - were characterised by a 72% increase in volume compared to the same period in 2024. Pears and apples, on the other hand, and again according to the multinational, decreased by 4%. And this despite the cost of EUR 1.07 per kilo equivalent. Put differently: value-added goods - although those 'commodities' remain absolutely crucial - are not suffering any setbacks and, to date, no particular problem has been seen. Having said that, however, a further objection can be made more generally. The current uncertainty is also generated by the tariffs chaos wanted by Donald Trump. A context in which the risk is that Orsero's business will suffer and, with it, its profit and loss account. The multinational - although aware of the complexity of the situation - again does not share this fear. First of all because - it is recalled - Orsero is not, in principle, an exporter to the US. So possible tariffs do not affect it directly. Of course! There is the export of avocados from Mexico to America, the company admits. And, however, the turnover generated by that activity is limited (around USD 50 million) compared to the total revenue of EUR 1.57 billion in 2024. Not only that. The T-Mec (free trade agreement between Canada, America and Mexico) - which includes avocados - is legally very difficult to change. So,' says Orsero, 'beyond Washington's declarations, it is not so likely to see news from which real problems will arise. Not least because alternative geographical sources of supply are difficult to identify. In Peru, for example, the production window is limited while in Colombia there are quality problems. The 'made in the USA' solution is also impracticable, says Orsero, since the policies to defend the territory (for example in California) and the high cost of local labour make the solution economically unsustainable. Ultimately, therefore, the Italian multinational does not see tariffs as a real problem. Not even with regard to a probable future direct presence in the US? In that case,' Orsero concludes, 'we may have to think about the issue. In general, however, any issues would be far more than counterbalanced by the positive industrial and strategic value of the entire operation.

Yes, the strategic and industrial significance. Another important front is the expansion of the group's infrastructure. Recently completed - and put into operation - is the expansion of the Verona hub where, among other things, a focus is on soft fruit. Somewhat behind schedule, however, is the situation in Greece. In Athens, the organic growth of the facilities has to reckon with a non-fluent interaction between the company and the local authorities. The context in Seville is different. Here the land for the new warehouses has been bought. The bureaucratic-administrative process is underway and the first brick should be laid in 2026. The total commitment, of the investment in the Spanish city, is around 15 million to 2030. In short: the effort to support the company's growth is in the numbers. Finally, the fourth range. In the past, the ready-to-eat fruit and vegetable business had become a front on which the company was betting heavily. In reality, growth in the segment has been lower than expected. The 2025 start of this area, the group indicates, is very positive. Moreover, it is a front characterised by good profitability. Overall, however, it is undeniable that - mainly due to the price of cut fruit that remains challenging for the consumer - the expected boom has not been seen. Consequently, the group's current attitude - with respect to this segment - remains one of 'wait and see'.

Accounts on the rise
In the first quarter of 2025 Orsero realised EUR 379.6 million in revenue (it had been 337.8 in the same period of 2024).
Net profit stood at 8.14 million (4.9 million profit a year earlier).