Swiss-Irish food group Aryzta posted 13.3 percent growth in organic sales in the six months to January, despite rising supply chain and cost pressures.
The Zurich-based group, which was delisted from Euronext Dublin last year, said earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 104 million euros, reflecting growth of 36 .7% as Covid restrictions are eased.
The group’s underlying EBITDA margin increased by 240 basis points to 12.5 percentage points on the back of volume and price growth and “disciplined cost management.”
The results were beyond expectations, with total revenue from continuing operations growing 11 percent to 835.3 million euros during the period and total production growth of 11.3 percent.
Aryzta’s foodservice business grew 30.7% during the period, with growth also seen across the quick-service restaurants and retail business.
Growth in Europe was 14.3 per cent after reopening, while Aryzta’s markets in the rest of the world saw 7.7 per cent growth, influenced by Restrictions are ongoing in Australia and New Zealand.
The cancellation of Aryzta’s Brazil business has hit revenue, but a more than doubling of production capacity in Malaysia in February is boosting growth expectations this year.
“Organic growth accelerated on the back of strong production and further positive pricing to support double-digit revenue growth performance,” said Aryzta President and Interim CEO Urs Jordi.
“Profitability has also improved, reflecting the benefits of a simplified structure, disciplined cost management, and strong organic growth, despite supply chain volatility and input costs.” significantly higher.
“Management is focused on maintaining its improved business momentum and financial performance to continue building a business towards sustainable organic growth.”
The expectation for full year 2022 is organic revenue growth from 12pc to 14pc.
However, it said in an unscheduled announcement today that inflation continues to fall.
“Inflation for all input costs from labor, materials, logistics and especially energy continues to trend upward, with prices and availability of these key inputs remaining highly variable. action,” the statement said.
Expectations are “further significant price impact” this year in response to rising input cost inflation.
https://www.independent.ie/business/irish/food-group-aryzta-sees-revenue-profit-growth-despite-rising-costs-41418756.html Aryzta Food Group grows revenue and profit despite rising costs