Swiss-Irish bakery giant Aryzta has reported that revenue decreased by 6.3% to €1.78 billion in the first half of its financial year.
Revenue in the group's European business increased 0.7% to €868.3 million compared to the same period last year, however, revenue in North America decreased 7.4% to €724.2 million.
The company, which operates brands such as Cuisine de France and La Brea Bakery, saw EBITDA drop 29.6% to €161.3 million, while underlying net profit decreased 53.5% to €50.9 million.
Artyza's new CEO Kevin Toland, who began the role last September, said that the group is "actively implementing a range of measures" to improve EBITDA.
"We are in a multi-year turnaround programme," he added. "Under our new leadership team, we are reshaping the group’s focus on our core B2B frozen bakery customers, improving operational efficiencies and deleveraging the balance sheet.”
Business Changes
Aryzta says that declines in the first half of the year were driven by previously disclosed issues, butter pricing in Europe, and labour and distribution costs in the US.
However, the group's Cloverhill business in the US, which had been dragging down growth, was successfully disposed of during this period.
In January, the company revised its earnings forecast for the 2018 financial year, citing difficulties in its US business, as well as Brexit-related pressures in the UK.
Elsewhere, Arytza also announced today that Pat Morrissey, the group's general counsel and company secretary, is stepping down from his position.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine
