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Investing.com -- Aryzta AG (SIX:ARYN) on Tuesday reported a 1.6% increase in organic growth in the first quarter of 2025, showing a sequential improvement despite subdued market conditions.
The growth was driven by a 1% increase in volume and a 0.9% rise in pricing, partially offset by a 0.3% negative impact from product mix.
Europe delivered a solid performance with 2% organic growth, supported by 1.6% volume growth and 0.7% pricing, while mix reduced growth by 0.3%.
In contrast, the Rest of World segment declined by 1.6%, mainly due to a 3.6% drop in volume. This was partially balanced by 2.3% pricing growth, though the mix again detracted by 0.3%.
The company said the decline was largely the result of the timing of promotional activities, which impacted March performance.
Total (EPA:TTEF) revenue for the group reached €523 million, comprising €467.9 million in Europe and €55.1 million in Rest of World markets.
Currency effects added 0.2% to overall revenue, resulting in a total revenue increase of 1.8%. Regional revenue movement showed a 2.1% increase in Europe and a 1.1% decrease in Rest of World.
The improvement in Q1 2025 followed weaker performance in previous quarters, including -1.5% organic growth in both Q2 and Q4 of 2024.
The latest results mark the strongest quarterly growth since Q3 2024, particularly in Europe. For the Rest of World region, this was the first quarterly decline in a year.
Commenting on the results, Aryzta Group chief executive Michael Schai said, “ARYZTA had a solid start to the year in line with our target to achieve low to mid-single digit organic growth this year. This was achieved against a weak consumer sentiment and deteriorating macro-economic environment. In addition, Rest of World weakness from promotional activities timing offset a strong performance in Europe.”
He added, “While quarterly organic growth can vary, ARYZTA is well positioned to grow over the medium and long term as bake-off takes increased share in a growth market.”