Capital Markets Day: Aryzta announces midterm targets

Dagmersellen / CH. (aag) Swiss Aryzta AG expects to achieve better than market growth, with an organic growth target of 4.5 percent-5.5 percent, and reach total revenue of at least EUR 2 billion at constant pricing by the end of the period. The group also expects to achieve a minimum Ebitda margin of 14.5 percent. Aryzta announces that it is targeting a total net debt including Hybrids of approximately 3 times and an ROIC of approximately 11 percent at the end of this period. Aryzta outlined its target expectation to maintain capex spending in the range of 3.5 percent to 4 percent of revenue.

Aryzta announces that it plans to repurchase and/or repay the Euro hybrid on a phased basis over its financial years 2023 to 2025. This repayment and/or repurchase is expected to be financed through cash generation from continued improvement in business performance. This measure is expected to deliver an annual net interest benefit of approximately EUR 15-17 million when fully repaid.

Chair and Interim CEO Urs Jordi: «Aryzta’s mid-term targets reflect our focus on organic growth and business improvement, which have transformed the business into a value creative model for the first time in many years. We have achieved very good progress in a short period despite encountering the unforeseen external economic challenges arising from Brexit, pandemic and war, all contributing to the current inflation trend and supply chain disruptions.

Our plan to address the expensive Euro hybrid bond through cash generation is the next step in further deleveraging the balance sheet, having reduced our debt level by over EUR 1 billion to date. We expect to sustain our return to organic growth by leveraging our multi local business engagement with customers, through superior product innovation and high service levels.»

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