Aryzta AG: announces Q1/2013 revenue growth

Zurich / CH. (aag) Swiss Aryzta AG announces its first quarter trading update for the period ended 31 October 2012: Revenue for the 13 weeks ended 31 October 2012 (unaudited):

in million Euro Food Europe Food North America Food Rest of World Total Food Group Origin Total Group
Group revenue 321,2 367,5 58,8 747,5 351,2 1’098,7
Underlying growth (0,2)% 1,3% 4,8% 0,9% 3,4% 1,7%
Acquisitions and disposals 1,2% 10,4% 1,3% 0,9%
Currency 1,8% 9,8% 4,2% 5,7% 7,8% 6,4%
Revenue growth 1,6% 12,3% 19,4% 7,9% 11,2% 9,0%

Commenting on the Q1/2013 Trading Update, Aryzta AG Chief Executive Officer Owen Killian said: «Our performance during the period was satisfactory, given that the global trading environment remains very challenging and has not improved since our year-end results announcement in September. As previously highlighted, FY-2013 will be another year of substantial transformation and reorganisation for Aryzta. Based on the Q1/2013 performance, we continue to view the outlook and guidance issued with our 2012 full-year results as valid».

Food

Total Food revenue grew by 7,9 percent in the first quarter to 747,5 million EUR. This growth consists of underlying growth of 0,9 percent, due to overall steady volumes and the lack of further price increases over the prior year, acquisition related support of 1,3 percent and favourable currency movements of 5,7 percent.

Food Europe revenue grew by 1,6 percent in the first quarter to 321,2 million EUR, due entirely to favourable net currency movements of 1,8 percent. While underlying growth declined by 0,2 percent, this relatively small decline illustrates a sequential improvement, compared to the larger declines experienced over the previous three quarters.

Europe remains very challenging, reflective of the weak macro consumer dynamics in the region and widening government austerity measures. The focus in Europe remains on completion of the ATI investment programme in order to leverage the broad customer relationships, distribution channels and product capabilities that exist within the business.

Food North America revenue grew by 12,3 percent in the first quarter to 367,5 million EUR, mostly due to favourable currency movements of 9,8 percent, as well as a small bolt-on acquisition that contributed 1,2 percent growth in the period and will accelerate Aryzta´s transition to fewer larger multi-product facilities in North America. Underlying revenue growth was 1,3 percent during the period, reflecting the steady volumes from Aryzta´s strong customer base and the absence of further price increases over the prior year.

The focus in North America is also on leveraging the Aryzta North America transformation to deliver further growth, as a result of the aligned business.

Food Rest of World revenue grew by 19,4 percent in the first quarter to 58,8 million EUR, with acquisitions contributing 10,4 percent and favourable currency movements providing support of 4,2 percent. Underlying revenue also grew by 4,8 percent, a considerable portion of which relates to additional production capacity coming online in Brazil.

Outlook

Aryzta´s strategy to deal with this challenging market environment remains the completion of its reorganization and transformational ATI program. Based on the continued progress of this program, and the performance during the period, our previous outlook and full-year guidance of five to ten percent growth in underlying fully diluted EPS remains unchanged, despite the overall challenging trading conditions related to weak consumer dynamics. The complete news release is available on aryzta.ch.