Aryzta AG

ARYZTA reported H1 2026 revenue of EUR 1,063.9 million, down 2.1% reported and -2.7% organically, with FX contributing 0.6%. EBITDA was EUR 139.9 million and the EBITDA margin was 13.2%, down 70 basis points year over year; gross margin before distribution was flat versus H1 2025 and improved 70 basis points sequentially versus H2 2025. EPS was EUR 1.82, essentially stable year over year, and free cash flow was EUR 23.6 million, largely in line with the prior year. For the full year, management said it expects organic growth at the lower end of guidance, further EBITDA and EBIT improvement, solid cash generation, improvement in net debt to EBITDA, and financing costs now at the lower end of the EUR 37 million-EUR 40 million range, versus the prior EUR 40 million-EUR 43 million target.

Urs Jordi framed the half year as challenged by macro and geopolitical uncertainty, weaker consumer sentiment, and especially Germany. He emphasized that the company is pushing Project Excellence faster, streamlining the organization, and looking at all options to maximize shareholder value in Germany. He also highlighted a 19% innovation rate supporting premiumization and profitability, and said the company still expects to move toward Swiss-listed SME-style payout ratios over time.

Martin Huber highlighted the main financial drivers: revenue down 2.1% reported / -2.7% organic, EBITDA margin at 13.2% versus 14.0% last year, and free cash flow of EUR 23.6 million. He said H1 margin was affected by about EUR 5.4 million of one-time Excellence-related costs, around 50 basis points of revenue, while gross margin was supported by 90 basis points from procurement and other savings plus 20 basis points from innovation. On the balance sheet, total net debt fell by almost EUR 100 million to EUR 789 million, leverage was 2.7x, core equity rose to 23.3% of total assets from 18%, and total financing costs fell by EUR 5.5 million to EUR 16.8 million, leading to a lower full-year financing cost guide.

Analysts pressed on whether Germany’s weakness reflected market decline, contract loss, or re-insourcing. Management said it was primarily a market and consumer issue, noted the German bakery market was down 1% in value and 4%-5% in volume, and said there was no cancellation of contracts or broad insourcing as the core explanation, though larger customers’ own manufacturing can reduce the addressable market. Questions also focused on why the company expects a second-half growth improvement and how Germany affects capital returns; management pointed to channel penetration, new facilities such as Perth, growth investments, innovation, and lower second-half comps, while saying the Germany review should conclude sometime in the second half of this year.