Swiss-Irish speciality baker Aryzta has announced that it is seeking raise €800 million of equity capital, primarily for debt reduction purposes.
Aryzta's board of directors plan to engage its shareholders through a rights issue, in orderto raise the amount.
The money will also allow the company to create the necessary strategic and financial flexibility to implement its business plan, the company said.
Repositioning Business
Aryzta has come up with a 'bottom-up business plan', that will focus on capitalising on the company's 'established and leading positions' in the frozen bakery market.
The decision was made after a comprehensive review of its capital structure.
Arytza's CEO, Kevin Toland said that the company expects to generate significant cash flow over the medium term.
“A significantly improved capital structure will provide Arytza with the means to continue to take the necessary steps to re-position the business and deliver on our strategy, ” Toland added.
Trading In Line With Expectations
The Cuisine de France maker has confirmed that trade in the fourth quarter of the financial year 2018 was in line with expectations.
The company expects an EBITDA between €296 million and €304 million for FY2018.
In May this year, the bakery giant reduced its profit outlook after the company's recovery plans were dented by renewed weakness in Europe.
Earlier in March, Aryzta reported a revenue decrease of 6.3%, amounting to €1.78 billion, in the first half of its financial year.
Aryzta closed its FY2018 on 31 July and is currently in a closed period.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine
