ARYZTA (ARYN) H2 2024 earnings summary

Executive summary

• Achieved all six midterm financial targets a year ahead of schedule, including revenue over €2.19bn, EBITDA margin of 14.6%, and ROIC of 13.4%.

• FY2024 revenue reached €2,195m with organic growth of -0.2% and positive volume growth.

• EBITDA was €321m, margin 14.6%; free cash flow was €138m.

• Innovation share increased to 18% of revenue, up from 15% in 2023.

• Smooth CEO transition completed, with a new technology committee and focus on AI and efficiency.

Financial highlights

• EBITDA margin increased by 70bps to 14.6%, surpassing midterm targets.

• Free cash flow rose to €137.8m, supported by EBITDA growth and working capital efficiency.

• ROIC improved by 110bps to 13.4%.

• EPS grew 22.5% to €0.10 per share, driven by profit improvement and lower financing costs.

• Net debt reduced to under €900m; leverage ratio improved to 2.8x.

Outlook and guidance

• Q1 2025 organic growth tracking at 3%; FY2025 targets low- to mid-single-digit organic growth.

• Further EBITDA margin expansion and EPS growth expected in 2025.

• CapEx for 2025 expected above 4% of revenue, with free cash flow likely slightly lower due to higher growth CapEx.

• Capital Markets Day in May 2025 to unveil 2025–2028 plan and capital return strategy.

• Intends to complete a 40:1 reverse stock split, subject to AGM approval.