Bakery giant Aryzta has reported a 14.4% increase in revenue in its 2023 financial year, to €2.19 billion, while EBITDA rose by close to a third (+32.3%) to €304.5 million.
Commenting on the group's performance, chairman and interim chief executive Urs Jordi said that the business "outperformed strongly in 2023 across all metrics", citing innovation as a key driver of top-line growth.
EBITDA margin for the group stood at 13.9% in 2023, while profit for the period increased to €125.7 million and free cash flow to €132.4 million.
'On Track'
"Aryzta is on track to deliver its mid-term targets having implemented all the key changes across our business," said Jordi. "With the post COVID recovery boost no longer a factor and a reducing price effect, we expect full year 2024 growth rates to normalise. Our growth will remain organic focused and innovation led while our margin progression will be supported by efficiencies and costs optimisation."
For the full year, Aryzta Europe achieved revenues of €1,948.0m with an organic growth of 15.2%, driven by pricing at 12.5% and volume/mix growth at 2.7%. Meanwhile, in Aryzta Rest of World, revenues amounted to €244.7m, equating to organic growth of 11.2%.
Organic Growth
Looking ahead to the upcoming year, the bread and pastry products maker stated that it anticipates further normalised improvements in all key metrics in 2024, with low to mid-single digit organic growth primarily propelled by volume and mix. It also expect EBITDA margin expansion to normalise, aided by growth, efficiencies, and cost discipline.
It added that it remains on course to reach its 2025 mid-term targets.
"We expect 2024 quarterly growth trends to vary as was the case in 2023," Jordi added. "In light of Q1 2024 organic growth trending at a lower run rate, reflecting temporary softness especially in QSR, we expect organic growth to be in the low to mid-single digit range for the full year.”
