Aryzta profits increase on M&A

Aryzta profits increase on M&A

Swiss bakery group Aryzta has booked a jump in full-year earnings, boosted by acquisitions and a strong performance in the developed markets of Europe and North America.

In the 12 months to 31 July, the company said group net profit increased by 18.3% to EUR378m (US$479m). Group-wide EBITA rose 19% to EUR566m. Group sales increased 6.8% to EUR4.81bn.

Aryzta's food business, which strips out agribusiness joint venture Origin Enterprises, saw EBITA increase of 19.6% to EUR486m. Within this division, operating profit from Europe was up 23.8% and North America saw EBITA rise 21%. These gains were partially offset by a drop in profit from the rest of the world, which fell 15.7%.

Aryzta's performance was supported by acquisitions in North America and Europe. The firm purchased Pineridge Bakery in Canada, Cloverhill Bakery in the US and German baker Klemme.

Aryzta CEO Owen Killian said: "Food group revenue increased by 10.0%, despite an adverse currency movement of -3.7%. Underlying revenue increased by 2.1% and acquired businesses contributed an excellent 11.6% increase in revenue during the period."

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ARYZTA AG

News Release

Zurich / Switzerland, 29 September 2014 – ARYZTA AG announces results for the financial year ended 31 July 2014

Key Performance Highlights

Food Group

– Revenue increase of 10.0% to €3.394bn.

- Food Europe increased by 14.0% to €1,586m.

- Food North America increased by 8.7% to €1,587m.

- Food Rest of World declined by (5.7)% to €221m.

– EBITA increase of 19.6% to €486m.

- Food Europe increased by 23.8% to €230m.

- Food North America increased by 21.0% to €230m.

- Food Rest of World declined by (15.7)% to €26m.

– EBITA margin increased by 110bps to 14.3%

– Net Debt: EBITDA ratio of 2.45x.

Origin

– Revenue declined by (0.2)% to €1.415bn.

– Origin Enterprises underlying fully diluted EPS increased by 10.4% to 57.51 cent.

– Origin dividend increased by 15.9% to 20.00cent – a payout ratio of 35%.

– Returned €100m to shareholders via tender offer.

– Net Debt: EBITDA ratio of 0.14x.

Group

– Group revenue increased by 6.8% to €4.809bn.

– Group EBITA increased by 19.0% to €566m.

– Underlying fully diluted net profit increased by 18.3% to €378m.

– Underlying fully diluted EPS increased by 17.2% to 422.2 cent.

Commenting on the results, ARYZTA AG Chief Executive Officer Owen Killian said:

"ARYZTA has delivered a strong performance for FY 2014, with an increase of 17.2%  in underlying fully diluted EPS in the final year of our three year transformation. Food Group revenue increased by 10.0%, despite an adverse currency movement of (3.7)%. Underlying revenue increased by 2.1% and acquired businesses contributed an excellent 11.6% increase in revenue during the period.Our alignment with the requirements of major food corporations will facilitate long-term growth, while the creation of ARYZTA Food Solutions will bring value and differentiation to independent customers. 

ARYZTA remains financially disciplined and very cash generative, which will support  continued investment and sector consolidation."

Original source: Aryzta