Swiss bakery group ARYZTA has reiterated its full-year earnings guidance after the performance of its business in the US in the first nine months of its fiscal year offset weakness in Europe.
The company said yesterday (5 June) that underlying sales during the first nine months of the year to end-April dropped by 1.1% in Europe.
Go deeper with GlobalData
However, year-to-date like-for-like sales increased 4.8% on a group-wide basis. Like-for-like sales in the US increased 7% and by 13.6% in Aryzta’s rest of the world division.
Meanwhile, underlying revenue from Origin Enterprises, in which the company holds a 68.8% stake, increased by 6.9%.
“The results reflect the benefit from previous acquisitions and improvement in channel mix. Weak consumer demand in Europe depressed underlying revenue in the period,” CEO Owen Killan said.
Including the impact of currency exchange and acquisitions, total sales rose 5.8% in the nine months to EUR3.08bn (US$3.85bn).
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.
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 GlobalDataAryzta said that the impact of political and economic uncertainty in Europe was compounded by the “additional challenge” of pushing price increases through to offset higher costs.
However, the company emphasised the upside it is seeing from its Aryzta Transformation Initiative supply chain revamp and reiterated full-year earnings per share guidance of 338 cents per share.
Kepler Capital Markets analyst Jon Cox reiterated said sales were “in-line” with expectations and reiterated his buy recommendation on the stock.
Click here for the full release.
