ARYZTA (ARYN) Investor Presentation summary

Strategic overview

• Revenue reached €1,055.2m for the half year to June 2024, with innovation share nearly doubling to 19.4% of revenues.

• Organic growth was slightly negative at -0.7%, with flat volume, but strong performance in France, Switzerland, Denmark, Poland, Fornetti, and Rest of World.

• Premium products contributed about 40% of revenue, and foodservice and QSR segments showed continued improvement.

• Investments include a new innovation center in Germany (operational H1 2025) and new dough lines in Malaysia, Switzerland, and Germany, plus a Perth facility.

• Five out of six mid-term targets have been delivered, with new CEO appointed and new targets expected in H1 2025.

Financial review

• EBITDA increased to €149.8m with a margin of 14.2%, driven by innovation and portfolio management.

• ROIC improved by 300bps to 13.1%, and free cash flow rose to €72.1m.

• Early achievement of mid-term leverage ratio target (<3x), with total net debt reduced to €927m.

• Hybrid bond buy-back delivered €7.1m in savings, offsetting higher interest rates; financing costs expected at the lower end of €67-71m guidance.

• New €930m revolving credit facility secured, extending maturity and headroom, with further hybrid buy-backs planned.

Operational performance and outlook

• Gross margin improved by 190bps from innovation and portfolio management, with additional 100bps from cost optimizations and input cost tailwinds.

• Distribution and SG&A costs increased, mainly due to labor costs.

• Portfolio management, especially in Retail (Ireland/UK), impacted organic growth by about 2.5%.

• Strategy remains focused on innovation-led organic growth, cost optimization, and balance sheet strengthening.

• Well on track to deliver the last remaining mid-term target, with continued investment in innovation and growth.