Aryzta shares up on 15% profit increase

SHARES at Aryzta, the world’s biggest maker of frozen baked goods rose yesterday after the company reported a 15% rise in first-half profit to €84 million.

Aryzta rose 70 cents or 4.3% to e16.95 in Dublin as sales jumped 16% to e1.57 billion.

In the six months through January operating profit at the company’s European food group rose 11% to e64.0m and by 26% to e34.3m at its north American division.

Aryzta was created in August when Ireland’s IAWS bought Switzerland’s Hiestand, combining Delice de France bread with Hiestand croissants.

Frozen baked goods generate about e30bn a year in sales globally and are winning market share from Europe’s traditional bakeries.

Acquisitions at Origin, which is part-owned by Arysta also boosted profit in the past fiscal year.

Davy analyst, John O’Reilly said Arysta’s results were “impressive”.

“We continue to bet on Aryzta for superior performance in a sector and food industry context,” he said.

On the development front, Greencastle, a new Irish bakery, distribution and R&D centre, was fully commissioned at interim results date.

“Along with Hiestand, it means that the former IAWS has migrated from a large out-sourcing dependency to in-sourcing production. Exports, already under way, will play an important role in its capacity utilisation,” said Mr O’Reilly.

NCB said the improvement at Arysta reflects greater focus on efficiencies and cross selling benefits into its enlarged customer base.

Aryzta is a Swiss incorporated and Zurich headquartered company and has a dual primary listing on the SIX Swiss and Irish exchanges.

It employs 8,000 directly and 1,000 people are employed at Origin.

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