Aryzta has announced that it expects to hit revenues of at least €2 billion by the end of the current reporting period, with an organic growth target of 4.5-5.5%.
The Cuisine de France owner also expects to achieve a minimum EBITDA margin of 14.5%.
In a statement, the group – which supplies McDonald’s – noted that its midterm targets reflect its focus on organic growth and business improvement, which have transformed the business into a value-creative model for the first time in many years.
“We have achieved very good progress in a short period, despite encountering the unforeseen external economic challenges arising from Brexit, pandemic and war – all contributing to the current inflation trend and supply chain disruptions,” said Urs Jordi, Aryzta’s chair and interim CEO.
“Our plan to address the expensive euro hybrid bond through cash generation is the next step in further deleveraging the balance sheet, having reduced our debt level by over €1 billion to date. We expect to sustain our return to organic growth by leveraging our multi-local business engagement with customers, through superior product innovation and high service levels.”
Last month, the Swiss-Irish bakery firm reported a 25.6% increase in organic revenue in its European operations in the third quarter of its financial year.
The bakery giant outlined that, at group level, the business reported ‘strong’ organic growth of 22.6% in the quarter, with total continuing revenue up by 20.1%, to €433.9 million.
Following on from a strong first half, its third-quarter performance was driven by volume growth of 15.6% and a price mix improvement of 7.0%.