Aryzta Makes Further Progress With Transformation Initiative
Aryzta, the global speciality bakery group, has reported a 1.7% increase in group revenue to €2.10 billion and a 6.4% rise in group EBITA to €198.3 million for the six months period ended 31 January 2014. Aryzta’s core Food Group business increased revenue by 5.7% to €1.59 billion and EBITA by 5.6% to €194.2 million. At constancy currency, EBITA grew by 10.8% to €203.7 million. Food Group EBITA margin was maintained at 12.3% (12.5% in constant currency).
Switzerland-based Aryzta has operations in North America, South America, Europe, Asia, Australia and New Zealand. Its Food Europe business increased revenue by 19.1% and EBITA by 18.7% during the first half.
Revenue declined by 3.4% in Food North America and EBITA fell by 0.9%. Revenue and EBITA also dropped in Aryzta’s Food Rest of World business by 9.9% and 21.4% respectively.
In March 2014, Aryzta agreed to acquire 100% of both Pineridge Bakery in Canada and Cloverhill Bakery in the US. The combined consideration of these acquisitions was €730 million, with further post-acquisition investments of €70 million anticipated to support a strong growth pipeline and integration. Once complete, these acquisitions will significantly enlarge Aryzta’s bakery capabilities, customer access and product portfolio in North America and should provide double digit EPS accretion in fiscal 2015.
Owen Killian, chief executive of Aryzta, comments: “Aryzta continues to make excellent progress with our Customer Centric strategy in this the final year of the ARYZTA Transformation Initiative. We have begun to undertake consolidation opportunities to extend market share and customer relevance in what is a fragmented sector. Continued financial discipline and strong cash generation will support these growth strategies, as well as improve our overall risk profile. We are guiding double digit growth in underlying EPS for FY 2014.”
