Aryzta: the business model is resilient

The industrial baking company recorded a strong rebound in sales volumes in the third quarter, despite a still difficult macroeconomic environment. Encouragingly, the group’s three divisions (Retail, Other Food Services and Quick Service Restaurant) saw their volumes increase. Unfortunately, a price drop weighed 1.1% on the group’s turnover. That said, management does not expect the emergence of a deflationary trend given the high volatility of prices and increases in the costs of raw materials as well as labor and services. Aryzta therefore maintained its organic sales growth guidance but indicated that it would be at the bottom of the range. The company is on track to achieve its medium-term gross operating margin target of 14.5%.