Aryzta posts sales growth despite ‘significant inflationary pressures’

Aryzta posted a 19.8 percent increase in revenue in its fiscal first quarter, despite ongoing “significant” inflationary challenges.

The Swiss-Irish food group reported sales of EUR 509.1 million during this period, with the company achieving organic growth of 22 percent.

This increase was largely attributed to an 18.1 percent price increase to combat inflation.

The Zurich-based company reported “solid” volume growth of 4.1 percent compared to the same period last year.

Organic sales growth in the group’s Europe division increased by 22.1 percent, driven by “very strong price growth” of 19.7 percent.

The European growth was attributed to double-digit sales growth in the foodservice business, particularly in France. Revenue also increased in Aryzta’s retail and quick service businesses.

Other markets outside of Europe saw sales increase by over 21%.

The group, which delisted from Euronext Dublin last year, expects to turn a profit in fiscal 2023.

Aryzta also expects a strong performance in the second half of the year, but added that it has taken into account risks related to inflationary challenges and “the highly uncertain macroeconomic environment”.

“Demand for baked goods, especially bake-offs, remains solid in most of our markets despite significant inflation-driven price increases,” said interim CEO and Chairman Urs Jordi.

He added that the group does not see inflationary pressures abating as further price hikes are now expected.

“Continued high cost inflation means more pricing must follow,” he added.