Aryzta, based in Switzerland, has commenced the construction of a new bakery in Perth, Western Australia. The company will invest an estimated €40m ($43.7m) in the project, with a construction period of two years. The facility, located in the Peel Business Park, is set to produce muffins, burger buns, and various bread types to cater to quick-service restaurants, foodservice, and retail customers. Furthermore, the bakery is anticipated to generate 80 direct jobs and 500 indirect roles.
According to the interim CEO Urs Jordi, “Australia is an attractive growth market for bakery products and this expansion in Perth will allow Aryzta to produce fresh and frozen products, as opposed to shipping frozen only over long distances from our plants in eastern Australia.”
The investment in the new plant aligns with the company’s mid-term plan and will contribute to enhancing Aryzta’s ESG credentials in Australia. The bakery will eliminate an estimated 1.7m miles in transportation as it will serve customers in Western Australia, reducing the need for transportation from Aryzta’s existing facilities in New South Wales and Victoria.
In line with the company’s announcement, the latest fiscal results for 2023 have shown strong growth. Total revenue rose by 20.9% to €2.1bn, with an organic increase of 21.6%. EBITDA also saw a significant increase of 57.8% to €271.3m. Net income experienced noteworthy growth at €112m compared to a €0.9m profit in the previous year.
Meanwhile, Aryzta reiterates its confidence in the delivery of growth and financial targets. Commenting on the profit growth, Jordi cited the doubling of the share of innovation to 11% of revenue and an increase in volume growth, despite challenges such as inflation, cost-of-living increases, and supply chain and energy costs concerns.
Additionally, conceiving the expansion in Perth as the first major bakery investment in Western Australia in 20 years, Aryzta’s strategic move reflects the company’s commitment to capitalize on the burgeoning food and beverage industry trends in Australia. The upcoming facility underscores the company’s dedication to meeting consumer requirements and capitalizing on evolving food and drink business opportunities.
Lastly, Aryzta’s commitment to quality and innovation stands as a testament to its strategic growth in the food and beverage industry. With a focus on delivering fresh and frozen products in Western Australia, Aryzta’s investment demonstrates a strategic move to stay ahead of food and drink consumer trends in the region.
