Zurich / CH. (aag) Swiss-Irish Aryzta AG released financial results for the period ended 31 January (H1-2020). The company announced strategic and financial progress for the first half. Europe and ROW are on track, but North America behind plan.
Highlights – Strategic Progress
- Portfolio refocus into frozen B2B bakery business achieved
- Europe and Rest of World regions performing well
- Aryzta North America underlying Ebitda outcome significantly behind
- Net debt further reduced post Picard disposal; Net Debt: Ebitda of 1.96x
- EUR (898) million non-cash impairment; EUR (461) million on strategic disposals / disposal groups held-for-sale; EUR (437) million on North America goodwill write down
- Near to medium term, North America underlying Ebitda margin expectation revised to high-single digits
- Project Renew gathering momentum; cumulative savings of EUR 57.4 million since launch; on track to reach EUR 70 million run rate savings
H1-2020 Financial Summary
- Group organic revenue declined (2.5) percent; total revenue declined (3.2) percent to EUR 1,656 million
- Europe organic revenue decline of (2.0) percent
- North America organic revenue decline of (5.3) percent
- Rest of World organic revenue growth of plus 8.6 percent
- Underlying Ebitda of EUR 169.8 million, plus 12 percent; like-for-like (6.3) percent before IFRS 16
- Europe underlying Ebitda of EUR 100.7 million; like-for-like plus 2.8 percent before IFRS 16
- North America underlying Ebitda of EUR 46.5 million; like-for-like (22.8) percent before IFRS 16
- Rest of World underlying Ebitda of EUR 22.7 million; like-for-like (3.5) percent before IFRS 16
- Group underlying Ebitda margin of 10.3 percent; like-for-like 8.6 percent before IFRS 16; down 30 bps before IFRS 16
- Underlying net profit of EUR 34.4 million
- Operating free cash generation of EUR 55.7 million; Cash flow generated from activities of EUR 23.2 million
- IFRS operating loss of EUR (597.2) million
- IFRS loss for the period of EUR (899.2) million; non-cash impairment charges and losses on disposal of EUR (898) million
- IFRS fully diluted loss per share of (93.0) cents
Chief Executive’s Commentary
Chief Executive Officer Kevin Toland: «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. Aryzta continues to make strategic and financial progress with our portfolio refocus to a frozen B2B business now complete. Our net debt is at its lowest level since 2013 with a leverage ratio below 2x. We continue to expect to deliver underlying Ebitda growth for FY20, excluding effects of IFRS 16, as the overall business stabilises and the benefits of Project Renew are further realised.»
For additional information please read Aryzta’s PDF file below (138 KB).
20200310-ARYZTA-H1-2020.
