Aryzta has reported strong growth in its third quarter, despite persistent inflation.
The rest of world continued its strong performance trend, which Aryzta noted was evident in recent quarterly updates.
Urs Jordi, chair and interim CEO, Aryzta AG, commented, “Our business performed strongly in Q3 [Third quarter], achieving solid volume growth despite implementing further necessary price increases to recover persistent inflationary costs across our business.
"Our focus remains on sustaining organic growth and leveraging innovation to grow market share."
Aryzta noted that while some input costs have fallen back from their peak levels, volatility remains high and overall input cost prices are still above their long term average cost.
Inflation trends for labour, purchased services, transportation and some bakery ingredients like sugar, proteins, especially eggs continue to increase significantly, compensating reductions in other ingredients like flour and butter, it added.
The industry 'continues to face persistent inflation which necessitates pricing action'.
Disciplined Cost Management
Aryzta highlighted that its disciplined costs management programs and efficiencies measures continue to deliver to expectation, supporting margin progression.
"We continue to control fixed costs and improve operational efficiencies to help our customers deal with the persistent cost inflation pressures and improve performance," Jordi added.
"While we face stronger organic growth comparisons in the coming quarter, we remain on track to deliver improvements across all key metrics in line with our guidance for the period ending July 2023.”