Swiss-Irish baking group Aryzta said it expects to hit revenues of at least €2 billion by the end of the current reporting period, with organic growth between 4.5 per cent and 5.5 per cent, outperforming the market.
The group, which owns the Cuisine de France brand here and supplies the likes of McDonald’s and Subway, also announced plans to repurchase or repay euro hybrid securities on a phased basis between its 2023 and 2025 financial years. The plan, which is expected to deliver an annual net interest benefit of €15 million to €17 million when fully repaid, will be financed by cash generation from continued improvement in business performance, Aryzta said.
The group last month said revenue grew 20.1 per cent to €433.9 million in its third quarter as normal consumer social activity returned.
“Aryzta’s mid-term targets reflect our focus on organic growth and business improvement, which have transformed the business into a value creative model for the first time in many years. We have achieved very good progress in a short period despite encountering the unforeseen external economic challenges arising from Brexit, pandemic and war, all contributing to the current inflation trend and supply chain disruptions,” said Aryzta chair and interim chief executive Urs Jordi.
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“Our plan to address the expensive euro hybrid bond through cash generation is the next step in further deleveraging the balance sheet, having reduced our debt level by over €1 billion to date. We expect to sustain our return to organic growth by leveraging our multi local business engagement with customers, through superior product innovation and high service levels.”
In its update to investors, Aryzta said it expects to achieve a minimum earnings before interest, tax, depreciation and amortisation margin of 14.5 per cent. It expects to maintain capital expenditure of 3.5 per cent to 4 per cent of revenue.
Aryzta has seen much upheaval in recent years, with a boardroom coup by a group of activist shareholders in 2020 that resulted in the exits of its Irish directors and the appointment of former head of Hiestand International Mr Jordi as chairman. Last March, Aryzta scrapped its Irish stock-market listing as its centre of gravity moved to Zurich.
