Aryzta targeting underlying growth

Management at Aryzta has pledged to focus on recovering the food group’s underlying growth potential, on the back of a disappointing set of annual results where recent acquisitions provided the only real high point.

The Irish-Swiss baked food group yesterday reported a 12.6% jump in revenue, for the 12 months to the end of July, to €3.82bn.

Currency movements increased revenue by nearly 8% while acquisition contributions added another 7.1%.

Underlying revenue, however, declined by 2.2%. Total underlying net profit was down by 4.7% to €360m, with underlying fully-diluted earnings per share falling by the same percentage to 402.2c.

“Our focus is now on delivering the underlying revenue growth potential of the business, which is expected to generate a ten-fold expansion in free cash generation in fiscal year 2016 to €200m+ and building further, thereafter,” said Aryzta’s chief executive, Owen Killian, who described the 2015 financial year as “a disappointing year for shareholders, as underlying revenue growth failed to materialise, resulting in negative operating leverage”.

He added, however, that the group remains well-invested and strategically positioned to grow its relevance to customers, through innovation and customisation

The group, which owns the likes of Tim Hortons and Cuisine de France, has now completed its move to a speciality food company, via the total divestment of its remaining stake in Irish agri-services group, Origin Enterprises last week.

Management is targeting underlying earnings per share of between 365c and 385c for its current financial year.


Lifestyle

This Christmas remember that there is no such thing as cheap food.Buy local: Use your LOAF

As we wait, eager and giddy, a collective shudder of agitated ardor ripples through the theatre, like a Late, Late Toyshow audience when they KNOW Ryan’s going to give them another €150 voucher. Suddenly, a voice booms from the stage. Everyone erupts, whooping and cheering. And that was just for the safety announcement.Everyman's outstanding Jack and the Beanstalk ticks all panto boxes

Every band needs a Bez. In fact, there’s a case to be made that every workplace in the country could do with the Happy Mondays’ vibes man. Somebody to jump up with a pair of maracas and shake up the energy when things begin to flag.Happy Mondays create cheery Tuesday in Cork gig

More From The Irish Examiner