Sparks - Orell Fussli

Orell Füssli delivered a strong set of FY25 results, with sales growth of 8% (driven by c 15% revenue growth in Security Printing), while book retailing saw sales expand by c 3%. The company pointed to continued high global banknote demand and market share gains in book retailing despite subdued consumer demand. Margins in Security Printing expanded significantly to 21.4% supported by product mix, high capacity utilisation, delivery pull-in and operational improvement. Margins in book retailing also improved to 8.2%. The strong Security Printing sales and margins resulted in c 65% divisional EBIT growth supporting group adjusted EBIT growth of c 32% to CHF29.8m, representing a 10.9% adjusted EBIT margin. Strong adjusted EBIT growth was reflected in c 35% growth of both net income growth after minorities and EPS. Consequently, Orell Füssli have proposed a c 32% increase in the dividend to CHF5.80 per share.

Guidance for FY26 was introduced with these results. The company expects FY26 sales growth of 2–5% and an EBIT margin of around 9%. Management points to ongoing high capacity utilisation in Security Printing until 2027 supported by the order book, albeit with a slightly softer order mix. The 2028 margin target of more than 8% given at the November 2025 capital markets day (see our previous note) has been nudged up with the company now guiding margins of 8.5–9.5% but the CHF300m revenue target is unchanged.