Swiss-Irish specialty baking company Aryzta reported a rise in its first half core earnings, but said its North American business continued to underperform.
The maker of Otis Spunkmeyer cookies, which announced a series of cost-cutting measures in 2018 and 2019 to reduce debt after a failed acquisition spree, said underlying profit before interest, tax, depreciation and amortisation (EBITDA) rose 12% to €169.8 million in six months ending in January.
Its underlying EBITDA in North America fell more than 4% in the same period.
Regional Performance
Commenting in the group's performance, chief executive Kevin Toland said, “Europe has delivered EBITDA and margin growth consistent with its focus on profitable volume and increased operating efficiency. North America, while reporting sequentially improved revenue, is behind in terms of its EBITDA outcome.
"Factors impacting North America profitability are being addressed and we expect an improved performance in H2."
The company repeated its full-year guidance, but said the outlook did not factor in any coronavirus effect.
In October, Aryzta said it expected its 2020 underlying EBITDA to increase compared to the previous year.
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