Substantial Expansion by Aryzta’s Food Group Business
Aryzta, the global food business with a leadership position in speciality bakery, has reported a 15.5% increase in group EBITA to €229.0 million on group revenue up 13.6% to €2.39 billion for the six month period ended 31 January 2015.
Revenue at Aryzta’s core food group business rose by 17.2% to €1.86 billion with Food Europe up by 5.4% to €805.1 million, Food North America ahead by 31.1% to €937.2 million and Food Rest of World advancing by 8.5% to €115.6 million.
Food Group EBITA increased by 15.8% to €224.8 million with Food Europe rising by 7.1% to €98.6 million, Food North America jumping 25.7% to €113.0 million and Food Rest of World expanding by 8.1% to €13.2 million.
Owen Killian, chief executive of Aryzta, comments: “Revenue growth of 17.2% to €1.86 billion underscores the substantial expansion of our Food Group business over the last six months. Our Customer Centric strategy is working and generating positive demand for our bakeries. Optimising our bakery capacity through SKU rationalisation continues to negatively impact underlying revenue growth in North America, reflecting the timing of replacement volume. However, this process will reduce investment capital requirements and positively impact return on invested capital and net cash generation over the next three years.”
He continues: “Our European performance remains resilient, being well positioned and well invested to benefit from continued strong growth in the In-Store Bakery channel. The restructuring of our flatbread business into a 50/50 JV will reduce European revenues by 6% over the next 12 months. Our immediate focus is to generate sustainable underlying revenue growth, while optimising our production for higher returns and increased free cash flow.
“Weak underlying revenue growth, combined with favourable currency translation, suggests underlying fully diluted EPS at the lower end of our 7%-12% guidance.”
Based in Zurich, Switzerland, with operations in North America, South America, Europe, Asia, Australia and New Zealand, Aryzta has a primary listing on the SIX Swiss Exchange and a secondary listing on the ISE Irish Exchange. Aryzta is the majority shareholder (68.1%) in Origin Enterprises.
