Aryzta Increases Revenues, North America Disappoints
17 Mar 2015 --- Speciality bakery group Aryzta has posted first half results, including a 13.6% increase in revenues to €2.39bn. The Swiss-based group missed analysts’ forecasts and blamed continued negative growth on its North American operations, where it has reduced its offering by 20%.
The company’s food group grew its revenues by 17.2% to €1.86bn, with sales in its European arm up by 5.4% to €805.1m, and its North American division up by 31.1 per cent to €937.2m. In the rest of the world, Aryzta grew its sales by 8.5% to €115.6m. Earnings (EBITA) increased by 15.8 per cent to €224.8m.
Aryzta chief executive officer Owen Killian said: “Revenue growth of 17.2% to €1.86bn 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.
“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,” he concluded.
