Zurich / CH. (aag) Swiss Aryzta AG achieved strong organic growth in the first quarter of FY2022. Revenue increased to EUR 424.9m, driven by strong volume growth. The company achieved 9.8 percent organic growth in Q1 for continuing operations comprising of 8 percent volume growth and a 1.8 percent price/mix improvement. Europe achieved a broad-based double-digit organic growth of 10.1 percent comprising of 8.6 percent volume growth and 1.5 percent price/mix growth. Rest of World achieved 7.9 percent organic growth comprising of 4.3 percent volume growth and 3.6 percent price/mix growth. Volume growth in Europe outperformed Rest of World due to a continued strong recovery while Rest of World was affected by Covid-related lock downs in New Zealand and Australia. The divestment of the Brazilian operation and the Swiss Sandwich business impacted total revenue growth of continuing operations by 1.2 percent, while currency movement contributed 0.3 percent.
The Q1 performance reflects the benefits of the new simplified organization and the empowerment of local management to engage with customers. A re-invigorated innovation programme in all markets helped deepen customer engagement leading to an improved margin profile due to beneficial mix changes. Continuing high inflation requires a combination of pricing and acceleration of operational efficiencies to protect the business performance. While pass through pricing mechanisms exist for some channels, the bulk of Aryzta business relies on annual calendar year pricing agreements. Some new agreements have been finalized. However, pricing discussions remain underway with other customers. Once these are finalized by year end, the new pricing arrangements will be effective for H2 of the financial year.
Aryzta reiterates the FY 2022 guidance for mid-single digit organic revenue growth with positive volume and pricing contributions. For additional information please read the company’s PDF file below (197 KB):20211117-ARYZTA-Q1-2022