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Aryzta AG: announces first half 2018 results

Zurich / CH. (aag) Swiss-Irish Aryzta AG announced its financial results for the six month period ended 31 January 2018. Commenting on the H1/2018 results, Aryzta AG Chief Executive Officer Kevin Toland said: «We are actively implementing a range of measures to improve our Ebitda. We are in a multi year turnaround programme. 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».

Key Developments

  • Disposals on track to exceed 450 million EUR
  • Cloverhill disposed, 201 million EUR restructuring related costs largely connected to it
  • Signature Foods sale agreed March 2018
  • Strategy progressing: Refocus on core and cost efficiencies
  • Refinancing completed; FY 2018 hybrid bond will not be called

Financial Summary

  • Revenue decrease of (6.3) percent to 1’787 million EUR; (2.2) percent organic decline, (exclusive Cloverhill plus 1.3 percent)
  • Aryzta Europe revenues increased 0.7 percent to 868.3 million EUR; 1.7 percent organic growth
  • Aryzta North America revenues (exclusive Cloverhill) decreased (7.4) percent to 724.2 million EUR; (0.4) percent organic decline
  • Aryzta Rest of World revenues increased 2.2 percent to 131.9 million EUR; 9.1 percent organic growth
  • Ebitda declined by (29.6) percent to 161.3 million EUR
  • Ebitda margin decline of 200bps exclusive Cloverhill (300bps inclusive Cloverhill)
    • Decline due to previously disclosed issues
    • Butter pricing and insourcing in Europe; and
    • Labour and distribution inflation in US
  • Net Debt: Ebitda (Syndicated Bank RCF + Term Loan Facility) of 4.21x
  • Underlying net profit decreased (53.5) percent to 50.9 million EUR
  • Underlying fully diluted EPS decreased (53.7) percent to 57.1 cent