Bakery firm Aryzta has said that it has achieved five out of six mid-term performance targets 'ahead of schedule', adding that it is 'on track' to deliver the remaining margin improvement target of at least 14.5%.
The group made the announcement as it reported a 0.5% decline in half-year revenue, to €1.055 billion, with flat volumes and a negative price/mix affecting its performance.
At the same time, EBITDA at the business increased 7% to €149.8 million, while EBITDA margin was up 100 basis points to 14.2%. Free cash flow at the business reached €53 million.
Last month, Arytza announced the appointment of Michael Schai as its new chief executive, effective from 1 January next year.
'Improved Profitability'
“Aryzta delivered another strong performance with improved profitability, solid cash generation and debt reduction," commented chairman and interim chief executive Urs Jordi. "Our innovation pipeline remains strong and supportive of improved growth expectations in H2, despite consumer spending remaining under pressure due to persistent cost of living increases.
"We reiterate our 2024 full year guidance for low to mid-single digit organic growth and improved financial performance across all metrics.”
Strong Second Half
Aryzta noted that anticipates stronger organic growth in the second half of the year, driven by a lower comparative base, a robust innovation and sales pipeline, recovery in the quick-service restaurant (QSR) sector, and seasonal factors.
It added that it has made 'continued positive progress' in its cost efficiency initiatives, achieving more than €28 million in cost optimisations since the launch of its mid-term plan. Around €10 million of these savings were realised in the first six months of 2024.
These cost optimisations have been achieved ahead of schedule and are contributing positively to margin expansion, the company added.
The company plans to maintain its focus on organic growth, business improvements, free cash generation, and reducing total net debt.
