With an IR growth rate of 3% in the first quarter, Aryzta AG has begun 2025 with a solid financial Q1 performance. The group has also announced plans for a reverse stock split with the intention of improving shareholder value.
Key Q1 Financial Results of Aryzta AG
- Revenue: 2.194 billion Euro, slightly declining on a organic organic basis (-0.2%)
- EBITDA: 320.9 million Euro, with a 5.4% YoY increase, alongside a 70 bps increase in margin to 14.6%.
- EPS: Increase of 22.5% at 10.0 cent Euro.
- Free Cash Flow: +4.1% to 137.8 million Euro
- ROIC: Increasing to 13.4% of 110 bps
- Net Debt Reduction: Estimated aggregate net debt to EBITDA exceeded 2.8x from 3.3x.
ARYZTA is expected to maintain a strong cash flow along side stabeled spending and discipline in cost management, which resulted in these positive outcomes, further strengthening the company financially.
Strategic Growth an Innovation
- Product Innovation: Contribution from New Products increased to 18% (from 15% in 2023)
- Operational Expansion: New production lines anticipated in Switzerland, Germany, and Australia after Malaysia expansion Q4 2024.
- Cost Optimization: Since the launch of mid term plan have achieved over 36 million Euro cost savings.
On a different note, ARYZTA aims to continue improving operational efficiencies and enhancing the portfolio to remain profitable, and a leader in the bake-off segment for the long term.
Regional Performance
- Europe: Restructuring led to a decline in organic growth of 0.7%, however profitability improved with EBITDA margin increasing to 14.0% (up 100bps).
- Rest of World: Organic growth of 3.7% was achieved, despite the margin contracting by 80bps to 19.8%.
Reverse Stock Split Proposal
ARYZTA plans to execute a 40-for-1 stock consolidation, subject to shareholder approval during the Annual General Meeting (AGM). This measure is aimed at improving institutional shareholders’ interest by increasing the company’s stock price relative to other companies on the SIX Swiss Exchange.
Sustainability Achievements
- Greenhouse gas emissions: Reduced by 5%.
- Water usage: Reduced by 5%.
- Food waste: Decreased by 8%.
- Renewable energy use: Increased by 56%.
Investment into sustainability includes buying new energy-efficient production machinery and wheat sourced from regenerative agriculture.
Leadership and Projection to the Future
Schai is the new Chief Executive Officer and his focus is on the execution of the company’s next growth plan which will be communicated at Capital Markets Day in May 2025. In addition to increasing the EBITDA margins, ARYZTA seeks to further lower its debt levels and improve returns to shareholders.
