Aryzta AG: Organic growth in line with expectations

Zurich / CH. (aag) Aryzta AG achieved a slightly positive organic growth in Q1-2024 in line with expectations. Positive volume and price effects were partially offset by negative mix effect, with the latter continuing to improve in line with previous guidance. Europe compensated for weakness in Rest of World, reflecting the importance of QSR in the latter region. Performance improved gradually through the quarter.

(Table: Aryzta AG)

Innovation continues to enable the business to selectively optimize its portfolio range and exit lower-margin products. This, along with the ongoing cost initiatives and efficiencies, ensures the business remains on track to improve performance. The results highlight the expected normalization of growth due to the reduced pricing effect, impact of portfolio optimization, strong prior year comparable growth, geopolitical impacts and the effect of higher cost of living on consumer spending.

(Table: Aryzta AG)

Urs Jordi, Chairman and interim CEO: «Aryzta’s Q1-2024 revenue developed in line with guidance as growth improved gradually through the quarter. We expect this progressive trend to gradually continue. The business continues to manage the ongoing inflationary challenges while delivering cost and footfall advantages to customers. Innovation is supporting portfolio optimization which, along with the ongoing cost initiatives, ensures the business remains on track to deliver an improved performance. We reiterate our guidance to deliver low to mid-single digit organic growth for the 2024 financial year. Aryzta remains focused on delivering the mid-term targets through organic growth, business improvement, free cash generation and total net debt reduction.»

(Table: Aryzta AG)