Aryzta Ag · SIX:ARYN
Aryzta — H1 2025 Earnings Presentation
34 slides from Aryzta's earnings presentation, Aug 11, 2025
Slide 1: Aryzta AG – H1 2025 Results
RESULTS PRESENTATION ARYZTA AG – H1 2025 RESULTS 11th August 2025
Slide 2: Forward Looking Statement
RESULTS PRESENTATION FORWARD LOOKING STATEMENT This document contains forward looking statements which reflect the Board of Directors' current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those c
Slide 3: Results Overview
RESULTS OVERVIEW
Slide 4: Key Highlights Half Year Results to June 2025
RESULTS OVERVIEW KEY HIGHLIGHTS HALF YEAR RESULTS TO JUNE 2025 • Revenue €1,086.4m • Organic growth 2.8%, positive volume/mix and pricing • EBITDA €150.5m • EBITDA margin 13.9% • Free cash flow €29.4m • Double-digit EPS growth to €1.84 4
Slide 5: Resilient Profitability in a Challenging Environment
RESULTS OVERVIEW RESILIENT PROFITABILITY IN A CHALLENGING ENVIRONMENT • H1 supported by 4.0% OG in Q2 • Solid performance in Europe and recovery in ROW • Challenging cost inflation environment • Input price volatility delayed some tender agreements • Subdued consumer sentiment • Market consolidation
Slide 6: Levers for H2 Performance Delivery
RESULTS OVERVIEW LEVERS FOR H2 PERFORMANCE DELIVERY • Organic growth: • Bake-off continues to take share • Bakery remains the most efficient calorie • Innovation: • Accounted for c.18% of revenue in H1 • New capacity in Malaysia, Switzerland, Germany and Australia, leveraging consumer trends • Cost
Slide 7: Continue to Target FY25 Guidance
RESULTS OVERVIEW CONTINUE TO TARGET FY25 GUIDANCE • Low to mid-single digit organic growth • EBITDA margin expansion • Improvement in key financial metrics • Further EPS growth 7
Slide 8: Mid-Term Targets FY 2025-28F
RESULTS OVERVIEW MID-TERM TARGETS FY 2025-28F Revenue growth Above market EBITDA margin EBIT margin Cash generation >15% >9% ROIC CAPEX as % of revenue 3.5–4.5% EPS Total net debt leverage ≥1.5-2x 8 Tariff uncertainty adds potential risk to the economic environment and forecasting visibility
Slide 9: Financial Review
FINANCIAL REVIEW ARWZTA
Slide 10: Key Financial Highlights
FINANCIAL REVIEW KEY FINANCIAL HIGHLIGHTS • Revenue increased 3.0% • EBITDA increased 0.5% • Return on invested capital 12.9% • Double-digit EPS growth 12.4% • Leverage ratio 2.8x vs. 2.9x in comparable period 10
Slide 11: Solid Growth and Resilient Profit and Cash Flow Performance
FINANCIAL REVIEW SOLID GROWTH AND RESILIENT PROFIT AND CASH FLOW PERFORMANCE Organic growth % EBITDA % / Free cash flow (€m) ROIC % in €m 2.8% 14.2% 13.9% 53.0 13.1% 12.9% 29.4 WACC: 8% 149.8 150.5 (0.7%) H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Revenue €1,055.2m €1,086.4m 11
Slide 12: Growth Supported by Positive Volume/Mix and Pricing
FINANCIAL REVIEW GROWTH SUPPORTED BY POSITIVE VOLUME/MIX AND PRICING In €m / % of revenue Organic growth 2.8% 1,086.4 Key Highlights: 0.2% 1.0% • Solid volume/mix growth and pricing, despite weaker consumer 1.8% context 1,055.2 • Acceleration of growth in Q2 Revenue growth 3.0% H1 FY24 Volume/mix Pr
Slide 13: Europe: Strong Organic Growth Performance
FINANCIAL REVIEW EUROPE: STRONG ORGANIC GROWTH PERFORMANCE H1 FY25 H1 FY24 Organic growth 2.9% (1.1%) EBITDA % 13.2% 13.6% • Revenue growth broad-based across most markets • Positive growth-performance across all channels, led by FS & QSR • Innovation share of c. 18% of revenue achieved • Margin imp
Slide 14: Rest of World: Acceleration of Growth in Q2
FINANCIAL REVIEW REST OF WORLD: ACCELERATION OF GROWTH IN Q2 H1 FY25 H1 FY24 Organic growth 2.1% 2.8% EBITDA % 19.6% 18.7% • Organic growth driven by solid recovery in QSR • Foodservice with flat growth, although with strong Q2 acceleration • Margin evolution supported by QSR recovery 14
Slide 15: Operational Leverage Partially Compensating Gross Margin Decline
FINANCIAL REVIEW OPERATIONAL LEVERAGE PARTIALLY COMPENSATING GROSS MARGIN DECLINE In €m / % of revenue 14.2% 13.9% Key Highlights: -140bps +60bps +20bps +30bps • Gross margin decline: • Input cost volatility • Delays in some customer tender agreements 149.8 150.5 • Labour cost inflation across all b
Slide 16: Building Blocks of Margin Expansion – FY 2025-28F
FINANCIAL REVIEW BUILDING BLOCKS OF MARGIN EXPANSION – FY 2025-28F Operations Procurement Structural costs €5-10m €20-30m €15-20m Net savings €20-30m Investment costs for increased digital maturity supported by AI €20-30m 16
Slide 17: Strong FY24 Working Capital Performance Impacting Free Cash Flow
FINANCIAL REVIEW STRONG FY24 WORKING CAPITAL PERFORMANCE IMPACTING FREE CASH FLOW Free cash flow evolution (in €m) 53.0 Key Highlights: • Stable EBITDA and CAPEX 29.4 • Working capital performance impacted by strong FY24 year-end comps • Lower financing costs more than offsetting higher cash taxes →
Slide 18: Continued Improvement of Trade Working Capital Efficiency
FINANCIAL REVIEW CONTINUED IMPROVEMENT OF TRADE WORKING CAPITAL EFFICIENCY Trade working capital as % of TTM revenue1.) 3.0% 3.0 2.5% 2.5 2.3% 2.0 1.8% 1.7% 1.5 1.3% 1.1% 1.0 0.7% 0.7% 0.5 0.2% 0.0 Q1 23 2.) Q2 23 2.) Q3 232.) Q4 23 2.) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 18
Slide 19: Further Improvement of Balance Sheet Strength
FINANCIAL REVIEW FURTHER IMPROVEMENT OF BALANCE SHEET STRENGTH Total net debt (incl. hybrid & leases) in €m Leverage ratio 3.8x 4.0 Total net debt 3.5 Key Highlights: 2.9x 2.8x 3.0 • Net debt reduction supported by: 2.5 1,018 • Solid year-on-year cash flow generation 2.0 927 886 • Lower hybrid fundi
Slide 20: Financing Costs Benefitting from Hybrid Bond Repurchase Programme
FINANCIAL REVIEW FINANCING COSTS BENEFITTING FROM HYBRID BOND REPURCHASE PROGRAMME Financing costs incl. lease interest (in €m) 33.5 2.7 13.9 Key Highlights: 22.3 • Financing costs optimisation: • Hybrid dividend reduction of c. €14m • Partially offset by an increase in bank financing interest • Ba
Slide 21: Lower Profitability Slightly Impacting ROIC
FINANCIAL REVIEW LOWER PROFITABILITY SLIGHTLY IMPACTING ROIC ROIC % 13.1% 12.9% Key Highlights: 10.1% Main drivers of ROIC evolution: WACC: 8% • Lower profitability • Stable invested capital base H1 FY231.) H1 FY24 H1 FY25 21
Slide 22: Continue to Drive EPS Growth Acceleration
FINANCIAL REVIEW CONTINUE TO DRIVE EPS GROWTH ACCELERATION Diluted EPS (in €) 1.84 1.63 Key Highlights: 1.42 • Profitability slightly impacted in H1 2025 • Higher cash taxes • Financing strategy and disciplined financing costs management strongly contributing to overall EPS growth H1 FY231.),2.) H1
Slide 23: Targeting Guidance Delivery
FINANCIAL REVIEW TARGETING GUIDANCE DELIVERY • Full year organic growth in the low to mid-single digit • Innovation and cost efficiencies to drive improvement in key financial metrics • Cash flow expected to accelerate • Continued strengthening of balance sheet 23
Slide 24: Thank You
THANK YOU
Slide 25: Appendix
APPENDIX
Slide 26: Summary Results – 6-Month Period Ended June 2025
APPENDIX SUMMARY RESULTS – FOR THE 6-MONTH PERIOD ENDED 30 JUNE 2025 in €m June 2025 June 2024 Revenue 1,086.4 1,055.2 Cost of sales (727.2) (691.8) Distribution expenses (139.8) (138.8) Gross profit 219.4 224.6 Selling expenses (48.4) (50.0) Administration expenses (88.6) (89.0) Operating profit 82
Slide 27: Revenue – 6-Month Period Ended June 2025
APPENDIX REVENUE – FOR THE 6-MONTH PERIOD ENDED 30 JUNE 2025 ARYZTA ARYZTA in €m Europe Rest of World Total Group Revenue 968.6 117.8 1,086.4 Organic growth 2.9% 2.1% 2.8% Currency movement 0.4% (1.7%) 0.2% Total revenue movement 3.3% 0.4% 3.0% 27
Slide 28: Segmental EBITDA – 6-Month Period Ended June 2025
APPENDIX SEGMENTAL EBITDA – FOR THE 6-MONTH PERIOD ENDED 30 JUNE 2025 EBITDA (in €m) 1 June 2025 June 2024 % Change ARYZTA Europe 127.4 127.9 (0.4%) ARYZTA Rest of World 23.1 21.9 5.5% Total Group 150.5 149.8 0.5% Change 1 EBITDA margin June 2025 June 2024 bps ARYZTA Europe 13.2% 13.6% (40) bps ARYZ
Slide 29: Free Cash Flow – 6-Month Period Ended June 2025
APPENDIX FREE CASH FLOW – FOR THE 6-MONTH PERIOD ENDED 30 JUNE 2025 in €m June 2025 June 2024 EBITDA 150.5 149.8 Working capital movement (31.3) 2.9 Working capital movement from debtor securitisation 7.8 2.9 Capital expenditure (40.7) (41.6) Net payments on lease contracts (20.5) (18.2) Proceeds fr
Slide 30: Return on Invested Capital
APPENDIX RETURN ON INVESTED CAPITAL – FOR THE PERIODS ENDED JUNE 2025, JUNE 2024 AND JUNE 2023 in €m June 2025 June 2024 June 2023 Average invested capital 1,187.5 1,197.2 1,231.9 NOPAT1 153.6 156.7 124.2 1 ROIC 12.9% 13.1% 10.1% 1 See glossary on slide 34 for definitions of financial terms and refe
Slide 31: Total Net Debt and Hybrid Funding
APPENDIX TOTAL NET DEBT AND HYBRID FUNDING – FOR THE PERIODS ENDED JUNE 2025, JUNE 2024 AND JUNE 2023 i n €m June 2025 June 2024 June 2023 Net debt (731.0) (432.2) (409.9) Hybrid Instrument Funding (155.3) (494.6) (608.4) Total net debt and hybrid funding (886.3) (926.8) (1,018.3) 31
Slide 32: Quarterly Organic Growth – 12-Month Period Ended June 2025
APPENDIX QUARTERLY ORGANIC GROWTH – FOR THE 12-MONTH PERIOD ENDED 30 JUNE 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 H1 FY25 ARYZTA Europe Volume % 3.4% (2.4%) 1.6% 3.0% 2.3% Price % (1.5%) – 0.7% 1.1% 0.9% Mix % (0.1%) 0.1% (0.3%) (0.3%) (0.3%) Organic growth % 1.8% (2.3%) 2.0% 3.8% 2.9% ARYZTA Rest of W
Slide 33: Average and Closing FX Rates
APPENDIX AVERAGE AND CLOSING FX RATES – FOR THE 6-MONTH PERIOD ENDED 30 JUNE 2025 Average Average Currency June 2025 June 2024 % Change CHF 0.9412 0.9612 2.1% AUD 1.7232 1.6420 (4.9%) GBP 0.8422 0.8548 1.5% PLN 4.2327 4.3172 2.0% Closing Closing December Currency June 2025 2024 % Change CHF 0.9362 0
Slide 34: Presentation Glossary
APPENDIX PRESENTATION GLOSSARY ‘Organic growth’ – represents the revenue growth during the period, after removing the impact of acquisitions and divestures and foreign exchange translation. This provides a “like-for-like” comparison with the previous period in constant scope and constant currency. ‘