Aryzta AG: Sequential margin expansion is on track

Zurich / CH. (aag) Swiss-based Aryzta AG achieved organic growth of 6.5 percent in Quarter 5 with revenue of EUR 538.9 million. This organic growth was supported by positive volume and price in the quarter despite strong growth achieved in the comparative period (Q1 2023), input costs remaining both elevated and volatile as well as consumer cost of living pressures.

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Europe performed strongly led by good volume performances in Germany, France and Poland. European channel performance remained consistent with previous quarters.

Rest of World organic growth was driven by price while volume dipped into negative territory (0.4 percent) largely due to temporary issues around the timing of promotional activities in QSR. Food Service performance in Rest of World remained in line with expectations.

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Growth continues to be supported by strong product innovation activities, which accounted for 13 percent of revenue for the 15 month period compared to 11 percent in the 12 months to July 2023.

While Aryzta AG is aligning its financial year to the calendar year from January 2024, the bakery group intends to continue to report quarterly market updates in 2024, with Q1 and Q3 updates scheduled for 22 April and 21 October 2024, respectively.

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Chairman’s and interim CEO’s summary

Urs Jordi, Chairman and interim CEO: «The positive organic volume growth reflects the competitive advantages of the bake off category for our customers in a challenging consumer environment. These advantages, coupled with our continuing focus on innovation, underpins our growth expectations. We reiterate our expectation for further sequential margin expansion for the remainder of 2023, supported by efficiencies and strict cost discipline. We see no significant near term change in trends for the remainder of this financial year despite the notable increase in cost of living pressures on consumers. Our strategy remains on track to deliver our midterm targets by focusing on organic growth, business optimization, free cash generation and total net debt reduction» (Tables: Aryzta AG).

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