Swiss-Irish group Aryzta said it is on track to hit its 2025 mid-term targets a year ahead of schedule, and expected improved financial performance as sales volumes grew.
The owner of the Cuisine de France brand in Ireland said it would achieve earnings before interest, tax, depreciation and amortisation margin of at least 14.5 per cent.
In a trading update, the group said it also expects organic growth performance to be not materially different to the latest guidance, with positive volume growth for the year and a return to positive pricing in the final quarter.
The cgroup said its improved financial performance would also support strong cash generation despite a significant increase in capital investment.
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The group will publish its results for the 2024 financial year on March 3rd.
“The delivery of all our financial targets set out in our mid-term plan one year ahead of schedule reflects the robust sustainability of our business model we have created at Aryzta and a wonderful foundation for future growth,” said chairman Urs Jordi. “Our new CEO Michael Schai will now take the business forward in its next cycle of growth and provide our new targets in our next mid-term plan in May.”
Mr Schai was named as permanent chief executive in July last year, almost four years after Irishman Kevin Toland stood down from the role, and was scheduled to transition into the job this month. A former managing director of Aryzta’s Asia-Pacific region based in Australia, he replaced Mr Jordi, who became interim chief executive in November 2020, following a partial boardroom coup that also saw the group shift its centre of gravity from Dublin to Zurich.
Since then, the group has improved its capital structure and reduced repayment costs by repaying €880 million in hybrid debt-equity instruments, which had been a key area of concern for the market when the group was the target of activist shareholders four years ago.
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