Zurich / CH. (aag) Swiss-Irish Aryzta AG announced financial results for the period ended 30 April (Q3/2020). Revenue is impacted by Covid-19 pandemic. Effective actions are taken to mitigate challenging market conditions, Aryzta said in its statement as follows.
Q3/2020 Performance Overview
- Group reported revenue in the quarter was EUR 644.2 million, representing a (21.5) percent organic decline versus Q3/2019 as the effects of Covid-19 impacted revenue in the period, particularly in the second half of March and in April.
- The Group responded rapidly to the changed consumer environment. The primary focus was on protecting employees and supporting our customers, while maintaining a strong liquidity position during this very challenging period.
- Since mid-March the Group took decisive actions to maximise cash and reduce costs, resulting in increased liquidity since the beginning of the crisis.
- Q3 trading patterns had been in line with guidance up until 15 March. However, market conditions and prospects deteriorated sharply since that date, leading to a negative organic revenue evolution of (49) percent in April. It is now clear that Covid-19 will have a material impact on Group performance in FY-2020. We cannot yet fully gauge the consequences that will result from the situation as the short and longer-term impact cannot be fully assessed at this point in time.
- Trading conditions in the month of May have seen some early signs of recovery and are now showing three consecutive weeks of revenue improvement leading to an organic evolution of approximatey (33) percent versus prior year. In particular, improvements have been seen in the QSR and retail channels, while Foodservice continues to remain subdued due to continued restrictions in key markets.
- In April, the Board of Aryzta appointed Rothschild + Co to undertake a review of all strategic and financial options available to the Group to maximise value for the benefit of all of the Group’s stakeholders. The review is expected to be concluded at the latest by the end of July 2020.
Chief Executive’s Commentary
Chief Executive Officer Kevin Toland: «Covid-19 is unprecedented and has impacted the lives of people across the world. It will have a material impact on Group performance in 2020. At Aryzta, while prioritising the health and safety of our colleagues, customers and suppliers, we have taken decisive action to protect the business and our cash resources. Our Q3 revenue has been strongly impacted by the pandemic but our facilities and products are positioned to recover and compete as economies stabilise and return to growth. Our management focus is on serving customers through this difficult period while preserving the value of our assets.»
For additional information please read Aryzta’s PDF file below (131 KB).
20200526-ARYZTA-Q3-2020.