Aryzta, the Swiss-Irish maker of par-baked pastries and breads delivered “solid organic growth” of 0.8 per cent in third quarter of the year, the group said on Monday.
The group, which owns the Cuisine de France brand here and supplies the likes of McDonald’s and Subway, reported a 15.5 per cent fall in profits to €49.1 million in August for the first half of the year.
It cited more cost-conscious consumers and upward inflationary pressures for tightened margins.
Meanwhile, Michael Schai, who was chief executive of the group, stepped down last week. Urs Jordi was appointed as interim chief executive to “ensure strong leadership and delivery of the company strategy”, the group said.
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Mr Jordi previously served as chief executive of the food company and continues in his role as chairman.
In its trading update on Monday, Aryzta said the third quarter results was delivered against a strong prior-year volume comparable. Growth was primarily driven by 1 per cent pricing, while volume was flat and mix slightly negative.
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Year-to-date September organic growth reached 2.1 per cent, in line with guidance, supported by a “balanced contribution” from volume and mix of 1.1 per cent and pricing of 1 per cent.
“In the context of stronger than anticipated labour costs and other input cost inflation pressures, Aryzta is accelerating and strengthening its cost optimisation programmes to improve business performance and profitability,” the group said.
Organic growth guidance for 2025 remains unchanged in the low to mid-single digit range.
The company expects to achieve earnings before interest, tax, depreciation and amortisation of at least €300 million on a like-for-like basis and free cash flow of approximately €100 million for the full year 2025, and reiterated its midterm targets.
“Aryzta delivered solid organic growth in the third quarter, in line with our guidance,” said Mr Jordi.
“We are focused on improving business performance and profitability through organic growth, innovation, process automation, and disciplined cost management to ensure a swift rebound.
“We are accelerating and intensifying our cost optimisation programmes to mitigate ongoing cost inflation, especially in labour.”
He said the group’s confidence was underpinned by a “strong track record of delivery in a challenging environment” and by “continued growth across our markets”.
“Our cash generation outlook supports our plans to reduce total net debt levels and return capital to shareholders,” he added.
