Switzerland-based baker Aryzta today (26 September) reported a jump in annual profits on the back of higher sales that were bolstered by acquisitions in 2010.
The company booked a 34.1% increase in underlying fully diluted net profit to EUR260m (US$349.7m) for the year to the end of July. Aryzta also filed an EBITA of EUR393.3m, up 44.1% on the year.
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The improved profits were on the back of a 28.8% rise in group revenue to EUR3.88bn. Arytza said sales without contributions from M&A and the impact of currency exchange had increased 6.7%.
However, the acquisitions that Aryzta made in 2010, including the US$1.1bn purchase of two US bakery firms Fresh Start Bakeries and Great Kitchens, had pushed up its revenue by 20.4%.
Chief executive Owen Killian said the year had been one of “substantial repositining” for the company. “Aryzta is now much better positioned opposite consumers with greater global access to limited serve restaurants and retail, complementing our well-established deeply distributed foodservice business,” Killian said.
Arytza, meanwhile, announced the acquisition of UK baker Honeytop Speciality Foods for GBP80m (US$124.1m). The company described Honeytop as a “leading manufacturer of flat breads” to UK retailers and foodservice operators.
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By GlobalDataLooking ahead, Killian said Aryzta would invest up to EUR100m over the next three years in what he called the “Aryzta Transformation Initiative” to support the roll-out of an ERP system across its entire business.
Aryzta plans to accelerate the programme this year, which, it said, would lead to “significant change” across the company in the new financial year.
It added that the initiative would lead to a restructuring of parts of the business, that would cost around EUR100m over the next two financial years.
However, Aryzta believes the move will improve its revenue by allowing it to “maximise cross-selling opportunities”.
The initiative will also improve its “leadership position” in speciality bakery and increase its margins, Aryzta added.
Shares in Aryzta were up 1.79% at CHF39.75 at 10:12 CET this morning.
Click here for the full statement from Aryzta.
