Aryzta has reported 13.3% growth in organic revenue in the first half of its financial year, exceeding expectations on the back of strong volume growth and positive pricing.
The company saw volume growth of 11.3% in this period as life returned to normal after the easing of COVID-19 restrictions in many parts of the world.
In addition, positive price/mix of 2% supported the company's overall organic revenue growth.
Chairman and interim CEO Urs Jordi, commented, “Profitability also improved reflecting the benefits of our simplified structure, disciplined cost management and strong organic growth, despite supply chain volatility and significantly higher input costs.
“Management is focused on sustaining the improved business momentum as well as its financial performance to further build a sustainable organic growth driven business.”
Total revenue from continuing operations grew by 11.0% year-on-year to €835.3 million.
Underlying EBITDA for the period increased by 36.7%, to €104 million, while underlying EBITDA margin accelerated 240bps to 12.5%.
Underlying net profit from continuing operations increased to €9.6 million, compared with a loss of €30.8 million in the comparable period.
The company’s foodservice division saw 30% organic growth, followed by QSR (quick-service restaurants) and retail at 10.9% and 6.5%, respectively.
In terms of regions, Europe reported a strong performance with organic growth of 14.3%, following the easing of restrictions.
Rest of the World delivered organic growth of 7.7%, impacted negatively by longer COVID-19 restrictions in Australia and New Zealand, Aryzta added.
Outlook For The Coming Year
The company expects organic revenue growth in the range of 12% to 14% for full-year 2022.
The bakery firm plans to finalise and communicate its strategic growth plan and mid-term guidance in the third quarter, along with the group’s ESG roadmap.
In February, it doubled its manufacturing capacity in Malaysia through the acquisition of the bakery, equipment, and the corresponding land of co-manufacturer De-Luxe Food Services from Envictus International Holdings Limited.