ARYZTA (OTCPK:ARZT.Y) Update / Briefing Transcript

Summary of ARYZTA Update Call - October 08, 2025 Company Overview - Company: ARYZTA (OTCPK:ARZT.Y) - Industry: Food production, specifically in the bakery sector Key Points and Arguments Financial Performance - EBITDA Guidance: The company is targeting at least €300 million in EBITDA on a like-for-like basis, but there is a significant deviation from previous guidance, with a noted €20 million shortfall attributed to wage inflation and tactical pricing issues [12][14][17] - Cost Management: The pace of implementing necessary cost measures has been slower than expected, prompting a renewed focus on accelerating these actions in Q4 and into 2026 [10][11][21] - Free Cash Flow: The company expects to achieve around €100 million in free cash flow for the year, supported by top-line improvements and accelerated cost measures [23] Market Environment - Consumer Behavior: There is noted consumer hesitance, with fluctuating spending patterns impacting the business environment [12][51] - Competitive Landscape: The industry is experiencing increased competition, particularly in the tendering process, which has become more aggressive due to pricing pressures [34][50] Management and Governance - Leadership Changes: The board has reinstated Urs Jordi as Interim CEO following the departure of Michael, with a focus on navigating current challenges and ensuring strong performance for shareholders [32][36][62] - Board Oversight: The board emphasizes its active role in governance and decision-making, ensuring that the company remains focused on performance and shareholder interests [62][63] Strategic Focus - Midterm Plan: The company remains committed to its midterm plan despite current challenges, with a focus on organic growth and operational improvements [37][38][45] - Industry Consolidation: ARYZTA is observing market consolidation trends and is prepared to participate, although the current focus remains on strengthening its core business [41][44] Future Outlook - Upcoming Announcements: The next significant update will be the Q3 results announcement scheduled for October 20, which is expected to provide further insights into the company's performance and strategic direction [68] Additional Important Points - Investment in Production: The company is investing in new production lines, which are expected to ramp up effectively without initial losses [20] - Dividend Policy: There is no immediate plan to reinstate dividends until certain financial metrics are met, particularly the repayment of hybrid capital [45][46] - Market Positioning: The company aims to leverage its position in the bakery sector, emphasizing the enduring demand for bakery products as a competitive advantage [47][54]