Cuisine de France maker Aryzta shares fall as it reports profit drop for first half of 2025
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Business Post
4 days ago
- Business Post
Cuisine de France maker Aryzta shares fall as it reports profit drop for first half of 2025
Shares in wholesale bakery company, Aryzta, have fallen 0.26 per cent to CHF75.65 (€80.40) per share after it reported a 15.5 per cent drop in ...
Irish Times
5 days ago
- Irish Times
Company behind Cuisine de France sees profits fall 15.5% as consumers seek out more value
Profits at Aryzta fell by 15.5 per cent to €49.1 million in the first half of the year as more cost-conscious consumers and upward inflationary pressures tightened margins for the Swiss-Irish maker of par-baked pastries and breads. The group, which owns the Cuisine de France brand here and supplies the likes of McDonald's and Subway, described its profitability performance as 'resilient'. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 0.5 per cent to €150.5 million, while EBITDA margin decreased by 0.3 per cent to 13.9 per cent. 'The decline in margin reflects the challenging market environment as well as the impact from delays in the finalisation of some tender agreements in the period,' the group told investors. READ MORE 'This is the result of the challenges faced from the significant price volatility in some key raw materials such as butter, eggs and cocoa, as well as increased labour costs across our geographies.' Aryzta said its focus remains on delivering continued business performance and efficiency improvements. The group is targeting cost reductions in the range of €40-€60 million from operations, procurement and structural costs initiatives between now and 2028. The plan also involves incremental ramp-up costs of €20-€30 million for the further roll-out of the IT infrastructure to secure the gross cost savings, resulting in a net projected saving of €20-€30 million. Innovation accounted for about 18 per cent of revenue in the first half. Aryzta chief executive Michael Schai said the company delivered a 'solid' first half year performance in a 'challenging market environment' marked by subdued consumer sentiment. 'We achieved organic growth of 2.8 per cent, underpinned by a healthy 2.1 per cent volume growth, which resulted in further market share gains,' he said. 'We remain committed to driving performance through a focus on organic growth, innovation, process automation and strict cost discipline. 'We continue to target our 2025 full year guidance for low to mid-single digit organic growth and improved performance across key financial metrics.' Solid organic growth helped generate revenue of €1.1 billion, which was up 3 per cent on the year before, with organic growth of 2.8 per cent. Total net debt including hybrid funding declined to €886 million compared to €927 million at June 2024 and €894 million at December 2024. The company generated free cash flow of €29.4 million, which was below the prior period to June 2024. The group's performance in Europe was described as 'solid' in most markets with good support from positive volume and pricing. EBITDA in the region reached €127.4 million, representing a margin of 13.2 per cent and a decrease of 0.4 per cent on the year before. Its activity in the rest of world significantly improved its performance over the period, achieving an EBITDA of €23.1 million, corresponding to a margin of 19.6 per cent, which was 0.9 per cent higher than a year earlier.
Irish Times
07-05-2025
- Irish Times
Aryzta targets up to €60m in cost cuts to boost margins over three years
Aryzta, the Swiss-Irish maker of par-baked pastries and breads, said it plans to find as much as €60 million of gross savings over the next three years in order to boost its earnings margins as its revenues at a faster rate than the wider baked goods market. The company behind the Cuisine de France brand in Ireland will likely have to spend €20 million-€30 million on further upgrading its IT infrastructure in order to deliver some €40 million-€60 million of gross cost cuts, it said on Wednesday as it announced new medium targets. This would result in net savings of €20 million-€20 million. It aims to improve its earnings before interest, tax, depreciation and amortisation (Ebitda) margin to more than 15 per cent over the three years, compared to 14.6 per cent last year. Aryzta said that it aims to further reduce its debt over the period, including the redemption of its final €155 million of hybrid debt-equity instruments, in order to return to paying dividends for the first time since 2017. It aims to reduce its net debt to 1.5-2 times Ebita from a ratio of 2.8 last year, but also look at bolt-on merger and acquisition opportunities in core markets – which span Europe to southeast Asia, Australia and New Zealand READ MORE 'Aryzta's mid-term targets reflect our strategy to focus on innovation-led organic growth and premiumisation, continuous business process improvements and a comprehensive cost discipline program,' said Aryzta's new chief executive, Michael Schai, who took on the role in January. 'Our strategy is targeting to generate sufficient cash to further reduce debt levels, invest in innovation and return capital to shareholders. We envisage further improvements across all our financial metrics over our new plan. It also reflect our aim to be well positioned in our key markets and have sufficient financial strength to control our own destiny given the consolidation taking place in the bake-off sector.' The company, which was formed in 2008 through the merger of Dublin-based IAWS and Swiss baking group Hiestand, saw its centre of gravity move from Dublin to Zurich in late 2020 under a boardroom coup in 2020, following years of weak performance following a series of debt-fuelled deals. The company has been through major restructuring since then, including the sale of a troubled North American business and its Brazilian unit, debt reduction and a refocusing on product innovation.
