Aryzta records 9.6% rise in revenue helped by acquisitions

FOOD COMPANY Aryzta yesterday maintained its full-year guidance as it reported a 9.6 per cent rise in revenue for its food business, helped by acquisitions.

However, underlying revenue growth was slightly down on the previous quarter, with the Zurich-based company posting a 4.4 per cent rise in underlying revenue, compared to a 4.7 per cent increase in the last quarter of its 2011 fiscal year.

This compares to a 1.7 per cent fall in the first quarter of 2011.

Recently-acquired companies Honeytop, a British flatbread business, and Canadian company Maidstone Bakeries, contributed 6.7 per cent in revenue growth. Currency had a negative impact of 1.5 per cent in the quarter. The first-quarter figures for Aryzta exclude the contribution from Origin Enterprises, which reported first-quarter figures last week, showing a 3.2 per cent rise in underlying revenues to €315.8 million.

Chief executive Owen Killian noted that the first quarter “was broadly a continuation of Q4 trends. “We have not seen any significant change in the trading environment since September,” he added. Revenue in Aryzta’s Food Europe division, which represents about 46 per cent of group revenue and includes the Cuisine de France brand, rose by 9.2 per cent in the quarter to €316.2 million. Acquisitions contributed 6.3 per cent of growth. The division benefited from “positive price action” according to the company, counteracting higher raw material prices and weaker volumes

Aryzta’s North American business, which accounts for about 47 per cent of revenues following two major acquisitions in 2010, increased by 9.1 per cent in the quarter to €327.1 million, with underlying revenue up 6 per cent.

“Like Europe, significant pricing was implemented in the period in order to recover higher raw material prices,” the company said.