•  Net profit slides to EUR146.3m
  •  Underlying net profit, pre-tax profit rises
  •  Sales, margins improve
Aryzta cautious on consumer outlook

Aryzta cautious on consumer outlook

Swiss bakery group Aryzta said that its performance for fiscal 2012 was "satisfactory" as it booked a decline in net profit, despite increasing revenues and higher underlying earnings.

In a regulatory filing this morning (24 September), the firm revealed profit attributable to equity shareholders fell to EUR146.3m (US$156m) for the year to 31 July, down from EUR212.7m last year. However, underlying net profit, which excludes certain one-off items, rose to EUR291m, up from EUR260m last year.

Group EBITA increased 12.9% to EUR444.1m and EBITA margin increased 50 basis points to 10.6%.

Aryzta said revenue in the period benefited from an improved performance from its food business, despite challenging trading conditions in its main European markets. Sales increased 8.5% to EUR4.21bn, up from EUR3.88bn. Excluding acquisitions, group underlying revenue growth totalled 3.8%.

Looking to the coming year, Aryzta chief executive Owen Killian said the company has "no great expectation of any recovery in consumer behaviour". Underlying earnings per share growth is expected to "broadly mirror" 2012, with an increase of 5-10%.

"Resurgent food inflation adds additional challenges for Aryzta and its customers," Killian warned. "We remain focused on working closely with our customers to manage inflationary pressures in order to maintain affordability without compromising quality or service."

Show the press release

Zurich/Switzerland, 24 September 2012 - ARYZTA AG announces financial results
for the financial year ended 31 July 2012

Key Performance Highlights

Food Group
- Revenue increase of 11.3% to €2.87bn.
- Food Europe increased by 7.5%.
- Food North America increased by 13.2%.
- Food Rest of World increased by 23.0%.
- EBITA increase of 16.3% to €374.8m.
- Food Europe increased by 13.7%.
- Food North America increased by 18.6%.
- Food Rest of World increased by 18.0%.
- Net debt: EBITDA ratio of 2.05x.
- The weighted average maturity of the Food Group gross term debt is circa 5.94 years.
- Weighted average interest cost of Food Group debt financing facilities of circa 4.68%.

Origin
- Revenue increase of 3.1% to €1.34bn.
- Origin Enterprises underlying fully diluted EPS growth of 4.2% to 45.16 cent.
- Performed to expectation.

Group
- Group revenue increased by 8.5% to €4.21bn.
- Group EBITA increased by 12.9% to €444.1m.
- Group EBITA margin increased by 50bps to 10.6%.
- Underlying fully diluted EPS increased by 8.8% to 337.5 cent.

Commenting on the results, ARYZTA AG Chief Executive Officer Owen Killian said:
"ARYZTA's performance in FY 2012 was satisfactory given the challenging macro environment. Weak consumer spending affected our customers and the impact of government austerity measures was particularly noticeable in Europe. The business performance reflects the benefits of good progress on implementing internal transformation measures designed to better support our customers. This will continue throughout FY 2013. Resurgent food inflation adds additional challenges for ARYZTA and its customers. We remain focused on working closely with our customers to manage inflationary pressures in order to maintain affordability without compromising quality or service. We have no great expectation of any recovery in consumer behaviour during FY 2013 to support revenue growth and therefore expect underlying fully diluted EPS growth to broadly mirror FY 2012 with an increase of 5% -10%."

The ARYZTA Full Year Results for the year ended 31 July 2012 are available for download from the ARYZTA website and at the following link:
http://www.aryzta.com/2012-FullYear-Results

Original source: Aryzta