DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Aryzta Half-Year Results – What the Analysts Said

By Steve Wynne-Jones
Share this article
Aryzta Half-Year Results – What the Analysts Said

Swiss-Irish bakery firm Aryzta posted a group organic revenue increase of 0.7% in the first half of its financial year, however, total revenue was down by 4.2%.

The group reported that the performance marks the ‘first step towards delivery of a multi-year turnaround commitment’.

Here's how leading industry analysts viewed the firm's performance.

Jason Molins, Goodbody

"Aryzta has, this morning, reported H119 results with underlying EBITDA coming in at €151.6 million – 3% ahead of our €147 million forecast. With group organic revenues showing further signs of stabilisation – Q1 +0.3%, Q2 +1.0% – it is encouraging to see Aryzta starting to deliver on its multi-year turnaround.

"Project Renew has started well, particularly in North America, helping to deliver an underlying group EBITDA margin of 8.9% – down ten basis points year on year – but ahead of our anticipated 30 basis-point decline. Adjusted EPS came in at 6.0c, which was [approximately] 7% ahead of forecast, driven by the underlying EBITDA beat, as well as a stronger PAT contribution from Picard – better finance costs and lower tax outcome helping offset lower EBITDA performance.

ADVERTISEMENT

"Overall, following today’s update, we are likely to nudge up our FY19 forecasts, where we currently anticipate a 4% underlying EBITDA improvement."

Cathal Kenny, Davy

"With H1 margin in North America expanding year on year for the first time since 2014, we believe a pathway to stabilisation is now emerging at Aryzta. Group margin was broadly flat year on year – 40 basis points ahead of forecast – as self-help measures start to accrue.

"Despite a higher-than-anticipated working capital outflow, the statement provides a good foundation for attainment of full-year forecasts. We envisage no material change to FY 2019 EBITDA forecasts."

Cantor Fitzgerald

"Aryzta’s share price has risen by 10% this morning, after releasing a solid set of H1/19 results. Headline figures beat expectations, margins held up, and guidance for the full year was reiterated. H1/19 revenue fell by 4.2%, to €1.71 billion, in line with consensus expectations. H1/19 EBITDA fell by 6%, to €151.6 million, ahead of expectations. H1/19 profit fell by 22.5%, to €39.5 million – again, ahead of expectations.

ADVERTISEMENT

"Underlying geographies revealed some positive developments. In Europe, it posted 1.9% organic revenue growth. Switzerland Poland and France all showed improvements. However, insourcing remains an issue in Germany. In North America, organic revenue declined by 1.8%, but margins expanded by 40 basis points. The rest of the world maintained solid growth, with organic revenue rising by 6.7%.

"All in all, these were a good set of results for Aryzta, as it attempts to deliver on its transformation plan through Project Renew and a focus on the B2B market."

© 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.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.