Bakery giant Aryzta has posted a 1.9% increase in underlying EBITDA in its full-year 2019 operating period, as the benefits of its 'Project Renew' strategy bear fruit.
The group said that organic revenue was flat for the period, with total revenue declining 1.5% to €3.9 billion.
Its Europe business saw organic revenue growth of 1.9%, while North America organic revenue was down 3.8% due to a 'difficult' Q4, the group said. Rest of World organic revenue growth was up 8.9%.
Earlier this week, the group said that it had received a binding offer to sell its 43% stake in French frozen food business Picard, by Group Zouari, as it continues its streamlining process.
Upon the completion of this deal, Aryzta said that it will be able to realise 85% of the net proceeds of its non-core asset disposal objective.
It said that its Project Renew programme realised €26 million in benefits and €40 million in run-rate savings in full-year 2019.
“The steps we have taken in FY19, have established foundations on our path towards stability, performance and growth," commented Kevin Toland, Aryzta chief executive.
"This is reflected in the delivery of Group level underlying EDITDA stability. We are realistic about and resolved to address the clear revenue challenges presented by our North American business. We will see a further period of negative organic growth in H1 in the North American market with positive evolution expected in H2 as new contract volumes are realised."
Toland added that Aryzta expects to see an improved underlying EBITDA performance in the North American region in the coming full year, adding that the group expects further underlying EBITDA growth at group level, "as the benefits of the second year of Project Renew are being realised.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.