Bakery firm Aryzta has reported a 24.2% increase in total revenue in the first half of its financial year, which it said reflected the 'step by step implementation of business improvement initiatives' as well as 'disciplined cost control'.
Organic revenue growth stood at 25.4%, with its Europe business seeing organic growth of 26.2% and its Rest of World division reporting growth of 20.2%.
The company said that the result was achieved against a backdrop of 'significantly higher' cost inflation, which saw pricing increase by 19.3% in the half-year period, rising from 18.1% in the first quarter to 20.5% in the second.
It outperformed the market in France, Poland and Switzerland in Europe, as well as APAC, it said, with its QSR business performing well due to new product innovation.
'Strategic Plan Continues To Deliver'
“Aryzta’s business performance improved across all our key metrics as our strategic plan continues to deliver," commented Urs Jordi, Aryzta chairman and interim chief executive.
"Revenue and organic growth both improved despite unavoidable pricing to recover significant cost inflation. Margins were maintained through improved operational leverage and strong focus on fixed cost controls. This increased cash generation and net profits."
Increased cash generation also facilitated the planned redemption in full of the €200 million Euro Hybrid bond, which the company said improved its capital structure and reduced interest costs.
Outlook For 2023
Looking ahead, Aryzta noted that current trading levels remain unchanged, with inflationary trends and 'significant price volatility' expected to continue.
It expects to deliver further improvement across all its key metrics for the current full year, and has re-iterated its mid-term targets for 2025.
"Our performance reflects the step by step implementation of our bakery strategy as we focus on operational performance improvements within the businesses," Jordi added. "We continue to benefit from market share gains as the competitive advantages of bake off drive volume and value”.