Aryzta 'confident' of further growth

Food group Aryzta said today it was confident that it would continue to see earnings growth as it reported its results for the year ended July 31st.

The company, which was formed from the merger in August of food group IAWS and Swiss rival Hiestand, reported adjusted profit of €159.6 million and revenue of €3.13 billion.

Aryzta said both Hiestand Holdings and Iaws delivered strong performances over the period.

"The year was marked by further strong growth in both businesses," said chief executive Owen Killian. "The pro forma results for Aryzta reflect the enlarged base from which this new business will develop and grow."

The results were ahead of some forecasts, with Goodbody expecting adjusted earnings per share of 199.3c, compared to the final figure of 202c. Davy had predicted EPS of 200.1c.

Results from Iaws were also ahead of predictions, delivering EPS of 109.1c compared to an expected 106.9c.

"The variance can be attributable to last week's strong results from Origin Enterprises, which were well ahead of forecasts, while the food divisions were somewhat less than we had forecast," said Mr Igoe in a note this morning.

Meanwhile, Hiestand grew revenue by 14.5 per cent in the six months to June 30th, with operating profit up by 20.2 per cent to €24.7 million as increased distribution, greater efficiencies and the integration of Fricopan took place over the six months.

The company said it was confident that it would continue to build on the growth.

"The birth of Aryzta creates a global business with geographic, customer and product diversification and leading positions in the growth area of the speciality bakery market. From this base and with this underlying momentum, Aryzta can look forward with confidence to further sustained earnings growth and development," said Mr Killian.