Bakery group Aryzta booked a jump in first-half sales and earnings this morning (16 March) but shares fell as the contribution from acquisitions lifted a weaker-than-expected organic performance. 

The company said total revenue increased by 13.6% to EUR2.39bn (US$2.53bn). Sales from Aryzta's food group were up 17.2% driven by gains in North America where the group has acquired two businesses, Fresh Start Bakeries and Great Kitchens. However, underlying revenue fell 1.5% on a group-wide basis and the company flagged SKU rationalisation in North America as hitting the organic result. 

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

MainFirst analyst Alain-Sebastian Oberhuber said the SKU rationalisation was taking longer than expected. "The weakness of the lower margin improvement is the development in North America as Aryzta is rationalising SKUs further due to a) weakness of some clients and b) weaker macro growth. The rationalisation will take longer than previously expected," he noted. 

Group EBITA increased by 15.5% to EUR229.0m and EBITA margin rose by 20bps to 9.6%. Reported net profit rose to EUR57.6m in the six months to January 2015, compared to EUR40.6m in the year-ago period. 

CEO Owen Killian said the group's top line performance "underscores the substantial expansion of our food group business over the last six months"

See Also:

However, he conceded:"Optimising our bakery capacity through SKU rationalisation continues to negatively impact underlying revenue growth in North America, reflecting the timing of replacement volume."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Aryzta shares fell 10.1% in early trade today, dropping to CHF68.95 at 9.50 am CET. 

Click here to view the results presentation.