Full Year 2024 Aryzta AG Earnings Call Transcript
Key Points
- Aryzta AG (ARZTF) achieved all six midterm targets a year ahead of schedule, including organic growth, EBITDA margin, and revenue.
- The company reported a revenue of EUR2.195 billion for 2024, reflecting organic growth of 4.2% with positive volume growth.
- Innovation remains a strong focus, with 18% of revenue coming from new products and technologies, up from 15% the previous year.
- Aryzta AG (ARZTF) has made significant progress in ESG initiatives, including a 28% reduction in total incidence rates and increased use of renewable energy.
- The company has successfully reduced total net debt levels from EUR1.1 billion in 2022 to under EUR900 million in 2024, improving the leverage ratio to 2.8 times.
- Despite positive volume growth, overall revenue growth was flat due to muted consumer sentiment and active portfolio management.
- The EBITDA margin in the rest of the world decreased by 80 basis points to 19.8% due to geopolitical events affecting the QSR business.
- Distribution costs increased by 50 basis points, driven by higher transport and storage costs.
- Higher SG&A costs were incurred due to salary inflation and ramp-up costs for future efficiency initiatives.
- The company faces ongoing challenges with rising labor costs, particularly in Germany, which could impact future investment decisions.
(audio in progress)
Okay. Thank you, [Laura]. Good morning and welcome, everybody. I would just like to mention today that our Risk Statement on page 2 applies to all discussions.
I'd now like to hand over to our Chairman, Urs Jordi, to open the call.
Thank you, Paul. Good morning, all. Welcome to this year's results call. We would continue on page 4 where you can see that we achieved all six midterm targets a year ahead of schedule: The organic growth, the EBITDA margin, the ROIC, the revenue, CapEx, and the total net debt leverage. So this is an outstanding result one year earlier than planned.
On page 5 then, the key highlights for the full-year '24, with a revenue achievement of EUR2.195 billion which stands for organic growth of 4.2% with positive volume growth and slightly negative pricing. The share of innovation is still high with 18% compared to prior year 15%. So we keep investing in innovation, in new products, in new technologies. the EBITDA
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