Aryzta’s Irish business returns to growth

Aryzta, the Swiss-Irish food group, said on Monday that it grew its revenue by 6.1 per cent in the first quarter to €995m, as its business in the UK and Ireland returned to growth during the period.

Total revenue grew by 6.1 per cent in the three months to October 31st to € 995m. This growth consists of negative underlying growth of (0.4%) and acquisition growth of 0.7 per cent and currency movements of 5.8 per cent.

Aryzta chief executive officer Owen Killian said that underlying revenue development was "satisfactory" during the period.

“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. Consumer sentiment is more muted in Europe although our business in Ireland and the UK returned to growth in the period.”

In Europe, revenues grew by 9.5 per cent to €442.5 million, on the back of underlying revenue growth of 5.5 per cent and a contribution of 1.5 per cent from acquisitions.

In north America, revenue increased by 5.2 per cent in the first quarter to € 500.1m, but underlying revenue growth remained negative, and Aryzta says it is not expected to turn positive under the second half of its financial year.

In the group’s rest of the world division, revenue fell by 10 per cent in the first quarter to €52.4m, despite a negative currency impact of 12.2 per cent.

Looking to full year 2016, Aryzta said its focus continues to be on delivering the underlying revenue growth potential of the business.

“This is expected to generate a tenfold expansion in free cash generation to over € 200m in FY 2016. We reiterate guidance for underlying fully diluted EPS in the range of 365-385 cent for FY 2016”.