DAVY VIEW

ARYZTA’s interim results reflect impressive volume growth despite significant pricing, with the H1 margin bolstered by improved operating leverage as a result. Input cost inflation remains elevated, and further pricing is anticipated in H2-FY23; however, consumer demand trends continue to be healthy. ARYZTA expects “further improvements across all key metrics” for FY23. At first glance, we envisage a mid-single-digit upgrade to our current FY23 EBITDA forecasts.