Full Year 2025 Aryzta AG Earnings Call Transcript
Key Points
- Aryzta AG (ARZTY) achieved a revenue of EUR2.223 billion in 2025, with an organic growth of 1.5% supported by volume and pricing.
- The company reported an EBITDA of EUR306.9 million, which was above the guidance, demonstrating robust financial performance.
- Free cash flow of EUR120 million was achieved, representing a cash conversion of almost 40% of EBITDA, highlighting strong cash generation capabilities.
- The company completed customer negotiations and maintained a strong share of innovation, with 19% of revenue attributed to new products.
- Aryzta AG (ARZTY) is on track to deliver its midterm targets, including an EBITDA margin of 15% or more and a total net debt leverage target of 1.5 to 2 times.
- The EBITDA margin of 13.8% was 80 basis points behind the previous year, indicating some pressure on profitability.
- Input cost inflation, particularly related to labor costs and commodities like butter, protein, and chocolate, impacted gross margin by 290 basis points.
- Retail performance was flat, with challenges in both pricing and volume, contrasting with growth in other segments.
- The company faces restructuring costs in 2026 as part of its cost-saving programs, which will impact financial results.
- Despite improvements, the company still needs to further strengthen its balance sheet and improve its credit ratings to achieve a normalized financing structure.
Good morning, everybody. I would like just to highlight today that we have on page 2, a forward-looking statement that highlights some certain risks and uncertainties that impacts our business. These risks and uncertainties are relevant to today's discussions, especially in relating to forward-looking statements.
I would now hand over to Urs Jordi for the presentation.
Thank you, Paul. Good morning, all. Welcome to our full year 2025 results call this Monday. We will start on page 4 of the presentation. As you can see, a revenue of EUR2.223 billion being achieved in the year 2025. And with this, an organic growth of 1.5%, supported by volume and by price. An EBITDA of EUR306.9 million we have in our books and with this a free cash flow of EUR120 million. Based on this, on this solid performance and the strong cash flow, we decided to repurchase the remaining hybrid bond, the outstanding Swiss franc bond on the amount
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