Bakery firm Aryzta has reported growth in revenue and profit in its financial year 2024 amid weak consumer sentiment and a volatile input costs environment.
Revenue for the year increased marginally by 0.1% to €2.2 billion, while EBITDA was up 5.4% year on year, to €320.9 million, with EBITDA margin increasing 70 basis points to 14.6%, the company said in a statement.
Aryzta attributed the growth in EBITDA to the implementation of margin-enhancing innovations, active portfolio management, and disciplined cost management measures.
Revenue in some of its Quick Service Restaurants (QSR) markets was negatively impacted by the fallout from geopolitical conflicts in 2024.
However, the Cuisine De France maker's overall volume growth remained positive at 0.3%, while pricing was negative at (0.4%) for the full year. In the fourth quarter, the bakery giant returned to positive pricing.
Its full-year results also reveal that it achieved its current mid-term financial targets one year ahead of schedule.
Aryzta chairperson Urs Jordi commented, “Aryzta's delivery of all its current mid-term targets one year ahead of schedule is now followed by a solid start to current year trading.
“This underpins confidence in our guidance for further improvement in all our financial metrics in 2025.”
Performance By Region
Revenue in Europe was largely flat in full-year 2024 with positive volume growth and currency effect offset by price and mix.
Revenue growth was impacted by subdued consumer spending due to inflationary pressure as well as portfolio management measures implemented by the company, favouring value over volume.
In organic terms, the overall growth in Europe was negative but it saw positive performance in many of its key European markets.
Investments in new lines in Switzerland and Germany will enhance Aryzta's product range, service levels, and customer relevance, the company added.
EBITDA in the region increased to €271.5 million, representing a margin increase of 100bps to 14.0%.
The Rest of World segment reported organic growth of 3.7%, driven by positive pricing and volume effects with the mix remaining flat.
This was achieved against growth of 11.2% in the comparable 12-month period and the ongoing recovery in the QSR business from the impact of geopolitical events.
Both the QSR and Other Foodservice channels performed in line with expectations.
Rest of World generated EBITDA of €49.4 million, with margin declining 80bps year on year to 19.8%.
