Swiss bakery group ARYZTA has announced a €40m investment in a state-of-the-art bun bakery near Lisbon, marking a significant expansion of its Iberian Peninsula operations.

Construction of the facility will take place over 2026-27, with commissioning scheduled for 2028. The new bakery will complement ARYZTA's existing bun production facility in Spain, creating an integrated Iberian supply network.

The investment aims to optimise supply chains and improve customer service levels across Portugal and Spain. ARYZTA states the facility will also contribute to reducing its operational carbon footprint through more efficient logistics.

Urs Jordi, ARYZTA's Chairman and Interim CEO, described the Portuguese bakery as evidence of the company's track record in meeting customer needs. He stated: "We continue to invest selectively in growth, as evident in the new investment in Portugal."

Strategic Context for Expansion

The investment comes as ARYZTA reports achieving its full-year 2025 targets, with low to mid-single digit organic growth, EBITDA above €305m and free cash flow of €115-120m.

Since October 2025, management has implemented organisational changes and cost reductions to reposition the business. These efficiency initiatives focus on optimising fixed cost structure whilst maintaining selective investment in growth opportunities.

ARYZTA expects positive organic revenue growth in 2026, supported by completed customer negotiations and new production lines coming online in Germany, Malaysia and Switzerland. The company operates in what it describes as continued subdued consumer conditions.

Operational Performance

Financing costs for 2025 reached €42-44m, below initial guidance. ARYZTA attributes this to disciplined capital management and plans to diversify its balance sheet funding sources to exploit interest arbitrage opportunities in current Swiss credit market conditions.

The company cited high customer service levels and innovation as ongoing growth drivers alongside its new production capacity. Full audited financial results for 2025 will be released on 2 March 2026.

ARYZTA operates convenience bakery facilities across Europe, Asia, Australia and New Zealand, with shares listed on the SIX Swiss Exchange. The company maintains its commitment to capital returns under its 2025-2028 mid-term plan.