Aryzta reports increase in Q1 revenue
ARYZTA , the global food business with a leadership position in speciality bakery has reported a 6.1% increase in group revenue to €995m for the first quarter of its financial year, ending October 31.
The revenue was boosted by acquisitions of UK-based flatbread company Honeytop and Madistone Bakeries in Canada in 2010/2011, which negated the impact of weak consumer spending in Europe..
It noted that growth had returned to its Ireland and UK markets.
Aryzta reiterated its guidance for underlying fully diluted earning per share in the range of 365-385 cent for the full year of 2016.
The company’s chief executive Owen Killian said that Aryzta’s underlying revenue development was “satisfactory” in the first quarter.
“Consumer sentiment is positive in North America where we are encouraged by the initial consumer feedback to our renewed focus on our brands, particularly La Brea Bakery and Otis Spunkmeyer,” Mr Killian said.
“Consumer sentiment is more muted in Europe, although our business in Ireland and the UK returned to growth in the period,” he added.
Revenues in the company’s Food Europe division grew by 9.5% to €442.5m in the three months to the end of October. It said the performance reflected a continuation of the strong growth of large customers directly serviced by the company’s well invested European bakery network.
Revenues at the Food North America division rose by 5.2% in the first quarter to €500.1m. The company noted that the underlying revenue performance remains negative and as indicated earlier, it is not expected to turn positive until the second half of the fiscal year.
Meanwhile, revenues in Aryzta’s Rest of the World division decreased by 10% in the first quarter to €52.4m. It noted that underlying revenue growth was more than offset by the negative currency impact.
Based in Zurich, Switzerland, ARYZTA has operations in North America, South America, Europe, Asia, Australia and New Zealand. ARYZTA has a primary listing on the SIX Swiss Exchange and a secondary listing on the ISE Irish Exchange.
