Aryzta AG

For H1 2026, revenue was EUR 1,063.9 million, organic growth was -2.7%, EBITDA was EUR 139.9 million, EBITDA margin was 13.2%, free cash flow was EUR 23.6 million, and EPS was EUR 1.82. Revenue declined 2.1% reported, with a positive FX impact of 0.6%; EBITDA margin was down 70 bps year over year, and one-time Excellence Programme costs were about EUR 5.4 million, or roughly 50 bps of revenue. 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, and financing costs declined by EUR 5.5 million to EUR 16.8 million. For 2026, management expects organic growth at the lower end of the guidance range, further EBITDA and EBIT improvement, solid cash generation, and an improvement in net debt to EBITDA; full-year financing costs are now guided to the lower end of EUR 37 million-EUR 40 million versus prior EUR 40 million-EUR 43 million.

Urs Jordi said the first half was pressured by heightened macro and geopolitical uncertainty, weaker consumer sentiment, and tough prior-year comps, with Germany being the main drag. He emphasized that the company is pushing Project Excellence faster, streamlining the organization, and considering all options for Germany to maximize shareholder value. He also pointed to a 19% innovation rate as a support for premiumization and said the board plans to propose a capital return framework at the 2027 AGM, potentially via dividends, buybacks, or both.

Martin Huber focused on the financial resilience of the business despite the weaker top line. He cited a 13.2% reported EBITDA margin, 70 bps below last year, with about EUR 5.4 million of one-time costs tied mainly to restructuring and consulting; gross margin before distribution was flat year over year, helped by 90 bps from procurement and savings and 20 bps from innovation. He highlighted disciplined working capital and CapEx, free cash flow of EUR 23.6 million, net debt down to EUR 789 million, leverage at 2.7x, and financing costs improved to EUR 16.8 million, leading to a lowered full-year financing cost outlook of EUR 37 million-EUR 40 million. He also said the group expects Europe margin recovery in the second half and that rest of world EBITDA margin should return to prior-year levels for the full year.

Analysts pressed on whether Germany’s weakness was due to market decline, lost contracts, or insourcing. Management said it was mainly the market and consumer environment, with the German bread market down in value and volume, but later acknowledged that larger customers with their own manufacturing can re-insource when markets are short, reducing addressable volume. Questions also focused on what drives confidence in second-half guidance and growth beyond 2026; management pointed to channel penetration, new facilities such as Perth, continued innovation, lower comps, and the Excellence Programme as the main supports. On Germany, management said the strategic review will conclude sometime in the second half of this year, but did not give more detail on possible factory closures or asset impacts.