SCHLIEREN, SWITZERLAND —Aryzta AG companywide achieved nearly 10% organic sales growth for continuing operations in the first quarter of fiscal year 2022. The European business drove the increase with double-digit organic revenue growth in the foodservice business along with positive revenue growth in quick-service restaurants and the retail channel.
The European business, with revenue increasing nearly 10% to €365.8 million ($414.1 million), achieved organic sales growth of 10%. Business in the rest of world had organic sales growth of 8%, despite lockdowns related to COVID-19 in New Zealand and Australia, and revenue of €59.1 million ($66.9 million), up 4.1%.
“We achieved strong organic momentum in Q1 as recovery continued across all our markets,” said Urs Jordi, interim chief executive officer, when first-quarter results were announced Nov. 16. “The combination of strong volume recovery, positive price/mix in the period reflects the benefits of our new lean multi-local business model. Customer engagement has increased around innovation, product mix changes and service levels.”
Companywide, Schlieren-based Aryzta AG had revenue of €424 million. First-quarter revenue of fiscal year 2021 was €672.6 million, but that figure included revenue from the North American business that Aryzta divested in May of this year.
Amid high inflation, Aryzta has pass-through pricing mechanisms for some channels, but the bulk of the company’s business relies on annual calendar-year pricing agreements. Aryzta has finalized agreements with some customers and is having discussions with other customers. Once they are finalized, the new pricing agreements will go into effect for the second half of the fiscal year.
“We are continuously working on cost-mitigation measures to further improve our lean and efficient structure,” Mr. Jordi said. “In conjunction with pricing we are improving our mix of higher-margin product through innovation.”Aryzta still expects to hit its financial year guidance of mid-single-digit organic revenue growth, he said.