Bakery giant Aryzta has reported 10.1% growth across its European business in the first quarter of its financial year, comprising 8.6% volume growth and a 1.5% price/mix improvement.
The group, which reported revenue of €424.9 million in the quarter, said that its Europe operations outperformed that of its Rest of World business due to a 'continued strong recovery'.
New Zealand and Australia continued to be affected by COVID-related lockdowns, it added.
Overall, the group reported 9.8% organic growth in the period, comprising 8% volume growth and a 1.8% price/mix improvement, following on from a full-year that was 'ahead of expectations'.
'Strong Organic Momentum'
"We achieved strong organic momentum in Q1 as recovery continued across all our markets," commented Urs Jordi, Aryzta chair and interim CEO.
"The combination of strong volume recovery, [and a] positive price/mix in the period reflects the benefits of our new lean multi local business model. Customer engagement has increased around innovation, product mix changes and service levels."
In a statement, Aryzta said that its performance reflects the benefits of its new, simplified organisation, as well as 'the empowerment of local management to engage with customers'.
It has also upped its innovation stream with a view to deepening customer engagement across its markets, leading to improved margins.
The company added that it is combatting continued high inflation through a combination of pricing and the acceleration of operational efficiencies. It recently concluded the sale of its Brazil business.
"We are continuously working on cost mitigation measures to further improve our lean and efficient structure," Jordi added. "In conjunction with pricing we are improving our mix of higher margin product through innovation.
"We are confident in delivering our financial year guidance of mid-single digit organic revenue growth comprising of positive volume and price contributions and our Q4 run rate target of 12.5% EBITDA margin pre-IFRS16.”