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Bakery Firm Aryzta Sets Out Midterm Targets

Bakery business Aryzta AG has announced its midterm targets, noting that it expects to perform ahead of the market in the current reporting period.

At its Capital Markets Day, Aryzta announced that it expects to achieve an organic growth target of 4.5% to 5.5% and reach a total revenue of at least €2 billion at constant pricing by the end of the period. It also expects to achieve a minimum EBITDA margin of 14.5%.

Commenting, Urs Jordi, chair and interim CEO of Aryzta, said, “Aryzta’s midterm 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.”

Read More: Aryzta Sees Third-Quarter Revenue Up By A Quarter In Europe

Euro Hybrid Bond

The company announced that it plans to repurchase and/or repay its euro hybrid bond on a phased basis over the period from 2023 to 2025. The repayment and/or repurchase is expected to be financed through cash generation from continued improvement in business performance, it noted.

The measure is expected to deliver an annual net interest benefit of about €15 million to €17 million when fully repaid.

“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 €1 billion to date," Jordi added.

“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.”

© 2022 European Supermarket Magazine. Article by Nikita Naz Siddique. For more A-brand news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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