Bakery giant Aryzta has reported a 20.3% decline in revenue to €672.6 million in the first quarter of its financial year.
Organic revenue for the period dropped by 15.4%, with North America and Europe seeing declines of 16.2% and 15.7%, respectively.
The company maintained strong liquidity of circa €445 million as of 31 October, reflecting its focus on cost management and cash conservation.
'Broadly In Line'
Aryzta AG chair and interim CEO Urs Jordi stated, “The Q1 results were broadly in line despite the significant COVID-19 related disruptions and associated higher costs and sub-optimal capacity utilisation rates.”
The company witnessed improvements in the QSR and retail channels, offset by COVID-19 related declines in the foodservice segment.
It noted that further restrictions in Europe, introduced in November, have mostly affected the foodservice channel.
Jordi added that the next phase of Aryzta’s journey to improved performance, reduced complexity and the empowerment of local teams has commenced.
“Our new business model changes to a simpler country focus model with deeper customer relationships. This will lead to organic growth, lower costs and improved margins, and all of this guided by the significantly enhanced bakery, financial and turnaround experience at governance and operational level,” he explained.