Nov 28 2011 --- Total Food Group revenue grew by 9.6% in the quarter to €692.6m. Underlying revenue grew by 4.4%. Acquisition growth was 6.7% reflecting the addition of the UK flatbread business (Honeytop) and the full year benefit from Maidstone Bakeries in Canada. Currency had a negative impact of 1.5% in the quarter.

Food Europe revenue grew by 9.2% in the quarter to €316.2m. Acquisitions contributed 6.3%. Underlying revenue grew by 1.2%. The revenue data reflects positive pricing action in the period due to recovery of higher raw material prices and weaker volumes. The Q1 underlying revenue reflects a continuation of the trends highlighted at the full year results.

Food North America revenue grew by 9.1% in the quarter to €327.1m. Acquisitions contributed 8.1%. Underlying revenue grew by 6.0%. Like Europe, significant pricing was implemented in the period in order to recover higher raw material prices. The North American performance reflects the resilience of the LSR (limited serve restaurant) and large retail channels which dominate ARYZTA’s North American business. Food Rest of World revenue grew by 16.3% in the quarter to €49.3m. Underlying revenue grew by 14.7% in the quarter.

Origin Enterprises plc (‘Origin’) released its first quarter trading update on 21 November 2011. The results for its seasonally quiet period were to expectation and Origin reiterated its expectation to report results in line with current market consensus.

Autumn plantings estimates for wheat and oil seed rape indicate expansion which provides an excellent platform for the full year result. This is further supported by favourable farm economics across Origin’s geographic markets. The Group’s associate and joint venture interests also performed to expectation.

Financial Position as of 31 July 2011

As of 31 July 2011, the consolidated net debt of the Food segments of the Group, excluding Origin’s non-recourse debt, amounted to €955.5m. The Food Group net debt: EBITDA ratio was 2.24x (excluding hybrid instrument as debt) with interest cover of 7.43x (excluding hybrid interest). The Food Group gross term debt weighted average maturity was circa 6.2 years. The weighted average interest cost of the Food Group financing facilities was circa 4.28%. ARYZTA intends to maintain an investment grade position in the range of 2x – 3x net debt to EBITDA.

ARYZTA’s 71.4% subsidiary and separately listed company, Origin, has separate funding structures, which are financed without recourse to ARYZTA. Origin’s net debt amounted to €92.1m at 31 July 2011.

Revolving Credit Facility increased and maturity extended

ARYZTA agreed an amendment to its existing revolving credit facility which increases the facility from CHF 600m to CHF 970m and extends the maturity of the facility by two years to December 2016 with unchanged interest rate margins and financial covenants. It also adds new credit providers to match recent geographic expansion of the ARYZTA business. The capacity increase reflects ARYZTA’s strategy to match the size of the facility with growth in the business, while the extended maturity is deemed prudent given the current uncertainty surrounding financial markets.