Aryzta savouries

Source: Aryzta

Global bakery business Aryzta has reported a 19.8% increase in revenue in the first quarter of its financial year.

The growth, which took first-quarter revenue to €509.1m (£441.2m), has been largely driven by higher prices, with volume up 4.1%.

Price rises were particularly high in the company’s Europe division, accounting for 19.7% of the 22.3% revenue growth. Volume sales in the region rose 2.8%.

Aryzta said strong organic growth in Europe had been driven by double-digit organic revenue growth in its foodservice business together with growth in the QSR (quick serve restaurant) and retail channels. The business also reported strong continuing recovery of the French foodserivce market.

Reiterating its previous full-year guidance, the company said it planned to deliver further improvement across all key metrics, with performance expected to accelerate in the second half of the year. Aryzta added that this guidance took into account the risks around the ongoing challenges of inflationary price recovery.

“Bakery, especially bake-off, demand remains solid in most of our markets despite the significant inflation-driven price increases,” said Aryzta AG chair and interim CEO Urs Jordi, adding that the business was not seeing any reduction in inflation.

“Aryzta is communicating closely with all customers and working hard with them to manage these significant inflationary pressures. However, the persistent high level of cost inflation is such that further pricing will have to follow.”

In April, Aryzta announced it was doubling its production capacity for sourdough and speciality breads in the UK and Ireland following investment in its Grange Castle bakery in Dublin. The investment includes a new speciality bread manufacturing plant as well as expansion of its live sourdough starter plant.

“This expansion is an important step on the Aryzta journey to premiumise our bread range,” said Aryzta Ireland & UK managing director Anthony Proctor at the time.