Aryzta profit falls 15.5% on higher costs despite revenue growth

Published 11/08/2025, 09:00
© Reuters

Investing.com -- Aryzta AG (SIX:ARYN) on Monday said half-year profit fell 15.5% to €49.1 million as higher input and labor costs and delays in customer tenders offset a 3% revenue increase to €1.09 billion for the six months ended June 30.

The company reported EBITDA of €150.5 million, up 0.5% from €149.8 million a year earlier, while the EBITDA margin narrowed to 13.9% from 14.2%. 

Organic growth was 2.8%, reversing a 0.7% decline in the same period in 2024, with second-quarter growth reaching 4%.

Europe, which accounted for 89% of group revenue, posted €968.6 million in sales, up from €937.9 million, and organic growth of 2.9%. 

EBITDA in the region was €127.4 million, compared with €127.9 million a year earlier, with a margin of 13.2%, down from 13.6%. 

Rest of World revenue rose to €117.8 million from €117.3 million, with EBITDA climbing to €23.1 million from €21.9 million and the margin improving to 19.6% from 18.7%.

Free cash flow dropped to €29.4 million from €53 million, reflecting working capital movements after a strong 2024 year-end position. 

Total (EPA:TTEF) net debt, including hybrid funding, decreased to €886.3 million from €926.8 million in June 2024, bringing the leverage ratio to 2.8 times from 2.9 times.

Return on invested capital was 12.9%, down from 13.1% a year earlier but above the company’s weighted average cost of capital.

Diluted earnings per share rose 12.4% to €1.84 from €1.63, helped by lower financing costs. Innovation contributed about 18% of revenue in the period.

The half-year also saw the completion of a 40-for-1 reverse share split on May 6, and the presentation of the company’s 2025-2028 plan, which aims for above-market revenue growth, an EBITDA margin above 15%, lower leverage, and capital investment of 3.5%-4.5% of revenue. 

Capacity expansion projects included a new laminated line in Switzerland, ongoing work on an artisan bread line in Germany, and planned laminated capacity in Poland, alongside developments in Australia.

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