Aryzta Delivers Strong Full Year Performance
Aryzta’s food business has increased EBITA by 19.6% to €486.3 million, as a result of the improved efficiencies, on revenue up by 10.0% to €3.4 billion for the financial year ended 31 July 2014. Underlying revenue growth was 2.1%, acquisitions added 11.6% and currency continued to have a negative (3.7%) impact compared to prior year.
Aryzta’s Food Europe business, which holds leading market positions in the European speciality bakery market, grew revenue by 14.0% to €1.6 billion. Underlying revenues grew 2.1% and EBITA increased by 23.8% to €230.3 million, with margins expanding by 110 bps to 14.5%. The improved performance reflects the benefits from the reorganisation of the European business into Aryzta Food Solutions and Aryzta Bakeries and the gains derived from the now substantially completed ATI programme.
As part of the ATI programme, during the year Food Europe incurred cash non-recurring costs of €40.7 million, with an additional €88.4 million invested in the continued roll-out of the ERP system and other optimisation-related capital projects. A further €100 million was invested in a variety of bakery expansion-related capital projects. As a result of these investments, €51.7 million of non-cash asset write-downs were recorded throughout the European business for obsolete distribution, manufacturing and administration assets, due to the closure and/or reduction in activities related to those assets.
The Food North America business increased revenue by 8.7% to €1.6 billion and EBITA by 21.0% to €230 million. However, revenue at Food Rest of World declined by 5.7% to €221 million and EBITA declined by 15.7% to €26 million.
Owen Killian, chief executive of Aryzta, comments: “Aryzta has delivered a strong performance for FY 2014, with an increase of 17.2% in underlying fully diluted EPS in the final year of our three year transformation. Food Group revenue increased by 10.0%, despite an adverse currency movement of 3.7%. Underlying revenue increased by 2.1% and acquired businesses contributed an excellent 11.6% increase in revenue during the period.”
He adds: “Our alignment with the requirements of major food corporations will facilitate long-term growth, while the creation of Aryzta Food Solutions will bring value and differentiation to independent customers. Aryzta remains financially disciplined and very cash generative, which will support continued investment and sector consolidation.”
