FDBusiness.com

Disappointing But Transformational Year For ARYZTA

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

Disappointing But Transformational Year For ARYZTA

Disappointing But Transformational Year For ARYZTA
September 30
11:48 2015

Zurich-based ARYZTA has completed its transformation to a business fully focused on speciality food following completion of the disposal of its 68.1% stake in Origin Enterprises, the agri-services group, including €225 million post year-end. For the year ended 31 July 2015, ARYZTA reported a 12.6% increase in revenue to €3.820 billion for the continuing operations of its core Food Group, reflecting the benefits of acquisitions and favourable currency factors, although underlying revenue declined by 2.2%.

Revenues at its Food Europe business increased by 3.8% to €1.647 billion with 1.0% underlying growth, while its Food North America revenues increased 22.4% to €1.942 billion but with a 6.2% underlying decline. Food Rest of World revenues increased 4.7% to €231 million with 3.3% underlying growth.

ARYZTA’s EBITA increased 5.7% to €514 million as Food Europe’s contribution declined by 7.9% to €212 million and Food North America’s profit rose by 19.4% to €275 million. Food Rest of World increased EBITA by 4.6% to €27 million.

The group EBITA margin decreased by 80 bps to 13.5% with Food Europe’s margins declining by 160 bps to 12.9% and Food North America’s margins by 30 bps to 14.2%. Margins at Food Rest of World were maintained at 11.6%.

Owen Killian, chief executive of ARYZTA, comments: “ARYZTA has been in constant evolution to remain relevant to consumers as changing consumer trends negatively impacted parts of our business. This involved significant capital investment of €1.3 billion and acquisitions of €2.4 billion to reposition the business since FY 2010. ARYZTA is now fully focused on speciality food, with the divestment of our Origin investment and reinvestment in Picard.”

ARYZTA paid €446.6 million for a 49% strategic stake in Picard, a speciality premium French food business.

He continues: “FY 2015 has been a disappointing year for shareholders as underlying revenue growth failed to materialise, resulting in negative operating leverage. Our focus is now on delivering the underlying revenue growth potential of the business, which is expected to generate a tenfold expansion in free cash generation in FY 2016 to €200 million+ and building further thereafter. We expect to achieve underlying fully diluted EPS in the range of 365- 385 cent for FY 2016.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements