Aryzta Announces First Quarter Trading Update
ARYZTA has continued to maintain a strong balance sheet during the period. As of 31 July 2012, the consolidated net debt of the Food segments of the Group, excluding Origin’s non-recourse debt, amounted to €976.3m.
3 Dec 2012 --- Total Food revenue grew by 7.9% in the first quarter to €747.5m. This growth consists
of underlying growth of 0.9%, due to overall steady volumes and the lack of further price increases over the prior year, acquisition related support of 1.3% and favourable currency movements of 5.7%.
Food Europe revenue grew by 1.6% in the first quarter to €321.2m, due entirely to favourable net currency movements of 1.8%. While underlying growth declined by 0.2%, this relatively small decline illustrates a sequential improvement, compared to the larger declines experienced over the previous three quarters.
Europe remains very challenging, reflective of the weak macro consumer dynamics in the region and widening government austerity measures. The focus in Europe remains on completion of the ATI investment programme in order to leverage the broad customer re- lationships, distribution channels and product capabilities that exist within the business.
Food North America revenue grew by 12.3% in the first quarter to €367.5m, mostly due to favourable currency movements of 9.8%, as well as a small bolt-on acquisition that contributed 1.2% growth in the period and will accelerate ARYZTA’s transition to fewer larger multi-product facilities in North America. Underlying revenue growth was 1.3% during the period, reflecting the steady volumes from ARYZTA’s strong customer base and the absence of further price increases over the prior year.
The focus in North America is also on leveraging the ARYZTA North America transforma- tion to deliver further growth, as a result of the aligned business.
Food Rest of World revenue grew by 19.4% in the first quarter to €58.8m, with acqui- sitions contributing 10.4% and favourable currency movements providing support of
4.2%. Underlying revenue also grew by 4.8%, a considerable portion of which relates to additional production capacity coming online in Brazil.
ARYZTA has continued to maintain a strong balance sheet during the period. As of 31
July 2012, the consolidated net debt of the Food segments of the Group, excluding Origin’s non-recourse debt, amounted to €976.3m. The Food Group net debt: EBITDA ratio was 2.05x (excluding hybrid instrument as debt), with interest cover of 8.10x (ex- cluding hybrid interest). The Food Group gross term debt weighted average maturity was circa 5.94 years. ARYZTA intends to maintain an investment grade position in the range of 2x - 3x net debt to EBITDA.
ARYZTA is now entering the final phase of transformation. It is necessary and important
to align our organisation structure to support our Customer Centric Strategy and to unlock the potential of ARYZTA to support all customers.
Patrick McEniff, Group CFO, will take on the additional responsibility of Chief Operating Officer and will start to develop the local management structures to facilitate the com- munication of the food and bakery innovation capability within ARYZTA. Patrick has been instrumental in developing the Customer Centric Strategy. This strategy has led to the in- tegration of acquired businesses during 2012 with the ARYZTA Transformation Initiative.
John Yamin, CEO of ARYZTA North America, who led the successful integration of the business in North America during 2012 and who has led La Brea Bakery to become the leading Artisan bread brand in the US, will become President and Global Food Officer. This newly created role will lead Food innovation and engineering, Marketing and brand management, Global and Strategic customer relations, Human capital development as well as Corporate responsibility and sustainability. This key strategic role will work closely with all the team leaders who support customers to position ARYZTA Food opposite con- sumers as relevant to their lifestyles and retain the Passion for good food.
Patrick and John will work closely with the group CEO to provide cohesive operational and strategic support to the ARYZTA business as it expands and develops globally.
