Aryzta AG: Q1-2023 revenue growth largely driven by price hikes

Zurich / CH. (aag) Swiss Aryzta AG increased its first quarter revenue in FY 2023 by 19.8 percent to EUR 509.1m and delivered 22 percent organic growth. The increase was driven largely by 18.1 percent pricing and volume growth remained solid at 4.1 percent while mix change accounted for a decline of (0.2 percent). The Company reiterates the full year FY 2023 guidance to deliver further improvements across all key metrics in FY 2023 with performance expected to accelerate in the second half of the year. This also takes account of the risks around the ongoing challenges of inflationary price recovery. The Europe division reported organic revenue growth of 22.1 percent driven by very strong price growth of 19.7 percent. Volumes increased by 2.8 percent while mix was down (0.4) percent. The strong organic growth in Europe was driven by a double digit organic revenue growth of our Foodservice business together with a positive revenue growth in QSR and Retail channels. The Foodservice business in Europe was strongly supported by a continuing strong recovery of the French market. The division Rest of World reported an organic revenue increase of 21.4 percent, which comprised of a volume growth of 12.0 percent with a positive pricing of 8.7 percent, while mix added a further 0.7 percent.

Urs Jordi, Chair and Interim CEO: «Bakery, especially bake-off demand remains solid in most of our markets despite the significant inflation driven price increases. We are not seeing any reduction in the upward inflationary trends. Aryzta is communicating closely with all customers and working hard with them to manage these significant inflationary pressures. However, the persistent high level of cost inflation is such that further pricing will have to follow. We reiterate our full year 2023 guidance to deliver further improvements across all key metrics, with performance expected to accelerate in the second half of the year. This takes into account the risks around the ongoing challenges of inflationary price recovery and the highly uncertain macro-economic environment.»

For additional information please read the company’s PDF file below (191 KB):

20221130-ARYZTA-Q1-2023
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