Revenue at bakery group Aryzta grows 9% to €1.1bn in first quarter

Irish-Swiss bakery group Aryzta has described as satisfactory a first quarter performance which saw revenue growth of 9%, to just under €1.1bn.

As anticipated, much of the growth — during the three months to the end of October — came from outside Europe, which the group said remains a “very challenging” environment.

First quarter revenue in the European food division of the Cuisine de France- owner grew by only 1.6%, year-on-year, while growth amounted to 12.3% in North America. The 11.2% first quarter revenue growth announced last week by agri-services group, Origin Enterprises — of which nearly 70% is owned by Aryzta — also acted as a huge boost to group figures for the period.

“Our performance during the period was satisfactory, given that the global trading environment remains very challenging and has not improved since our year-end results announcement in September,” said group chief executive, Owen Killian.

Based on the first quarter performance, he stressed management continues to view its previously guided outlook for its current financial year — 5%-10% growth in adjusted earnings per share for the 12 months to the end of next July — as “valid”.

Much of the group’s current financial year will focus on “substantial transformation” with its overhaul programme — the Aryzta Transformation Initiative — nearing its final phase.

To that end, the group has made a number of managerial tweaks in order to provide “cohesive operational and strategic support to the business as it expands and develops, globally”.

Goodbody Stockbrokers also yesterday, maintained its full-year guidance for Aryzta — of 10% earnings per share growth.

“We do not expect to make changes to our growth forecast, despite being at the top-end of the company’s guidance.

“There is no detail on the profit performance in the first quarter and we continue to anticipate that the ATI has scope to help deliver growth at the higher end of guidance,” it said.

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