Aryzta confirms its profit goal

SPECIALITY baker Aryzta confirmed its full-year profit goal and reported food sales grew 9.6% in its first quarter, as acquisitions in Britain and Canada helped compensate for weak consumer spending, particularly in Europe.

The Switzerland-headquartered group, with stock market listings in Zurich and Dublin, expects 2011/12 earnings per share to rise 9% to €3.38.

“We have not seen any significant change in the trading environment since September and Q1 is broadly a continuation of Q4 trends,” chief executive Owen Killian said yesterday. “Aryzta’s Q1 revenue performance is in line with expectations.”

Shares in Aryzta rose nearly 4% in Zurich in early trade and were up 2.4% in Dublin at the close.

Aryzta doubled its bakery output in its 2010/11 year when it spent €1.4 billion on acquisitions, including taking full control of Canadian Maidstone Bakeries. It bought Honeytop, a British flatbread business, in September for an undisclosed sum.

Analysts said the cost savings from integrating its various businesses would compensate for a weak trading backdrop.

“The outlook for volumes is static because of the consumer environment, prices going up and the whole economic backdrop,” said Liam Igoe, analyst at Goodbody Stockbrokers in Dublin.

“The cost savings from integrating all their various businesses, including the acquisitions, that’s what will generate the profit growth over the next couple of years.”