Aryzta has reported a 0.1% year-on-year increase in organic revenue growth to €514 million in the first quarter, which the bakery giant says aligns with its expectations.
Positive volume and price effects were partially offset by negative mix effect during the quarter, with the latter continuing to improve in line with previous guidance, the company noted.
Aryzta's performance in Europe compensated for weakness in its 'Rest of World' segment.
'Progressive Trend'
Chairperson and interim CEO, Urs Jordi stated, “Aryzta’s first-quarter revenue developed in line with guidance as growth improved gradually through the quarter. We expect this progressive trend to gradually continue.
“The business continues to manage the ongoing inflationary challenges while delivering cost and footfall advantages to customers. Innovation is supporting portfolio optimisation which, along with the ongoing cost initiatives, ensures the business remains on track to deliver an improved performance.”
The company's performance highlights the expected normalisation of growth due to the reduced pricing effect, impact of portfolio optimisation, strong prior year comparable growth, geopolitical impacts and the effect of higher cost of living on consumer spending.
Outlook 2024
Jordi added, “We reiterate our guidance to deliver low to mid-single-digit organic growth for the 2024 financial year. Aryzta remains focused on delivering the mid-term targets through organic growth, business improvement, free cash generation and total net debt reduction.”
In March, Aryzta proposed the election of Cornelia Gehrig as a member of its board of directors at the Annual General Meeting (AGM). The board will also propose Gehrig for election to the remuneration committee.
It will propose Urs Jordi for re-election as chairperson and member of the board of directors.
