Bakery firm Aryzta has posted a 4.2% decrease in total revenue in the first half of its financial year, to €1.71 billion.
Group organic revenue was up 0.7% in the period, however, driven by a positive performance in Europe (+1.9%), while North America organic revenues slipped back 1.8%.
The group posted underlying EBITDA of €151.6 million, a decline of 6.0%, while underlying net profit was €39.5 million, a decline of 22.5%.
The group said that the performance marks the ‘first step towards delivery of a multi-year turnaround commitment’, with its organic revenue growth demonstrating ‘ongoing stabilisation’.
The period saw Aryzta complete a €740 million capital raise, to strengthen its balance sheet, as well as launch Project Renew, a new strategic plan with which the group hopes to deliver cost savings.
Focus On Stability
“The result in H1 2019 is consistent with our focus on stability. This performance represents a first step towards the delivery of our multi-year turnaround commitment,” commented chief executive Kevin Toland.
“We are developing a unified, cohesive Group with a singular focus on our core strengths within a growing frozen B2B bakery market. Project Renew will enhance both our operating efficiency and our competitive position and in H1 2019 already delivered the expected level of savings.”
Looking ahead to the full year, Aryzta said that it is ‘on track’ to deliver within its previously guided range.
“Our focus on delivering excellence for our customers every day will also contribute to performance and, in time, growth,” Toland added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.