FDBusiness.com

Helped by strategic acquisitions, Aryzta, the Switzerland-based international speciality bakery group, increased EBITA by 52% to Eur173.1m on revenue up by 36% to Eur1.89b for the first six months ended January 31st 2011. Group EBITA margin increased by 90bps to 9.1% and underlying fully diluted net profit rose 40.9% to Eur116.3m.

The core Food Group increased revenue by 60% to Eur1.28b during the period. However, acquisitions were responsible for 54.3% and currency factors for 5.5%, leaving underlying growth at just 0.4%. The European food business increased revenue by 10% to Eur585.3m but after stripping out acquisitions and currency gains underlying sales actually declined 1%. Food Europe’s EBITA grew 8.7% to Eur66.0m.

Revenue at Aryzta’s North American food business increased by 140% to Eur610.5m but underlying growth was 2%. EBITA grew by 118% to Eur76.9m.

Food Rest of World increased revenue by 591% to Eur87.4m with underlying growth of 18.4%. EBITA grew by 504% to Eur12.5m.

Owen Killian, chief executive of Aryzta.

In addition to its food business, Aryzta also hold a 71.4% stake in Origin Enterprises, a leading agri-business group with operations in the UK, Ireland and Poland.

“While the major feature of these results is the enormous contribution from our recently acquired businesses, we are most encouraged by the improvement in underlying revenue growth as consumers adjust to improving economic circumstances in most markets,” says Owen Killian, chief executive of Aryzta. “We have initiated business combination projects in Europe and North America which, as we roll out the Aryzta Technology Initiative (ATI), will create the opportunity to unlock the potential within our enlarged customer base.”

He adds: “The speed and severity of food raw material price increases was unexpected and is again a major focus in the business. In such an inflationary environment, bakery plays an important role in a food menu or basket and provides an innovative value proposition for consumers.”