Bakery giant Aryzta has reported 6.5% organic growth in the 13-week period of 28 October, which it said was driven by positive volume and price movements.
Growth was achieved despite high and 'volatile' input costs, consumer cost of living pressures and tough comparatives with the corresponding period a year ago, it noted.
European Volumes
The company reported group revenue for the period of €538.9 million, with its European business led by 'good volume performances', it said, particularly in Germany, France and Poland.
In its Rest of World segment, meanwhile, organic growth was driven by price, with volumes dipping into negative territory as a result of the timing of promotional activities in QSR, it said.
The bakery firm's growth trajectory continues to benefit from substantial product innovation initiatives, contributing to 13% of the overall revenue during the 15-month period under review. This marks an increase from the 11% reported in the preceding 12 months, up to July 2023.
'Challenging Environment'
“The positive organic volume growth reflects the competitive advantages of the bake off category for our customers in a challenging consumer environment," commented Aryzta chair and interim chief executive, Urs Jordi. "These advantages, coupled with our continuing focus on innovation, underpins our growth expectations."
Jordi added that the group is reiterating its expectations for "sequential margin expansion for the remainder of 2023, supported by efficiencies and strict cost discipline. We see no significant near term change in trends for the remainder of this financial year despite the notable increase in cost of living pressures on consumers."
The group's strategy remains 'on track', with Aryzta confidence of being able to deliver on its mid-term targets by focusing on organic growth, business optimisation, free cash generation and total net debt reduction.
