Aryzta full-year results ahead of forecast

Swiss based food business Aryzta reported a 6.8 per cent rise in full-year revenues to €4.8 billion this morning, driven by strong growth in its European food business. Earnings (EBITA) advanced by 19.6 per cent to €566 million, while pre-tax profits were up by 16 per cent to €481.5 million in the twelve months to July 31st 2014.

Commenting on the results, Aryzta chief executive officer Owen Killian said that the group delivered a "strong performance", and that alignment with the requirements of major food corporations will facilitate long-term growth, while the creation of ARYZTA food solutions will bring value and differentiationto independent customers.

“Our ARYZTA remains financially disciplined and very cash generative, which will support continued investment and sector consolidation.”

Revenues inthe group’s food division rose by 10 per cent to €3.4 billion, while European sales advanced by 14 per cent,buoyed by the prior year acquisition of Klemme; sales in North America were up by 8.7 per cent; and sales in the rest of the world fell by 5.7 per cent. Food earnings grew by 19.6 per cent t €486 million.

Revenues fell by 0.2 per cent to €1.4 billion at Origin Enterprises.

In a note Davy Stockbrokers said it believes Aryzta remains “well positioned in terms of asset quality and customer alignment to deliver on medium-term targets”.