Food group Aryzta sees revenue grow despite rising costs
Swiss-Irish food group Aryzta has announced organic revenue growth of 13.3% in the six months to January, reflecting a bounceback in foodservice since Covid restrictions eased.
Despite rising cost and supply chain pressures, the Zurich-based group, which owns the Cuisine de France label here and supplies McDonalds and Subway, said the performance was driven by volume growth of 11.3 per cent as “society normalisation took hold”.
The company, which delisted from Euronext Dublin last year, said its earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €104m, reflecting growth of 36.7pc as Covid restrictions eased.
The group’s underlying EBITDA margin increased by 240 basis points to 12.5pc on the back of volume and price growth and “disciplined cost management”.
Aryzta’s food service business grew 30.7pc in the period, with growth also recorded across its quick serve restaurants and retail business.
Growth in Europe was 14.3pc on the back of the reopening, while Aryzta’s markets in the rest of the world saw growth of 7.7pc, impacted by ongoing restrictions in Australia and New Zealand.
The disposal of Aryzta’s Brazil business impacted revenues, but a more than doubling of manufacturing capacity in Malaysia in February is boosting growth expectations this year.
“Organic growth accelerated due to strong volume growth and further positive pricing to support a double digit revenue growth performance,” Aryzta chairman and interim chief executive Urs Jordi said.
“Profitability also improved, reflecting the benefits of our simplified structure, disciplined cost management and strong organic growth, despite supply chain volatility and significantly higher input costs.
“Management is focused on sustaining the improved business momentum as well as its financial performance to further build a sustainable organic growth driven business.”