Aryzta: H1/2015 Financial Results

Zurich / CH. (aag) Swiss Aryzta AG announced its financial results for the first half 2015 – the six month period ended 31 January 2015. Commenting on the results, Aryzta AG Chief Executive Officer Owen Killian said: «Revenue growth of 17.2 percent to 1.86 billion EUR underscores the substantial expansion of our Food Group business over the last six months. Our Customer Centric strategy is working and generating positive demand for our bakeries. Optimising our bakery capacity through SKU rationalisation continues to negatively impact underlying revenue growth in North America, reflecting the timing of replacement volume. However, this process will reduce investment capital requirements and positively impact return on invested capital and net cash generation over the next three years. Our European performance remains resilient, being well positioned and well invested to benefit from continued strong growth in the In-Store Bakery channel. The restructuring of our flatbread business into a 50:50 JV will reduce European revenues by six percent over the next twelve months. Our immediate focus is to generate sustainable underlying revenue growth, while optimising our production for higher returns and increased free cash flow. Weak underlying revenue growth, combined with favourable currency translation, suggests underlying fully diluted EPS at the lower end of our seven to twelve percent guidance». Key performance highlights:

Food Group

  • Revenue increase of 17.2 percent to 1.86 billion EUR.
    • Food Europe increased by 5.4 percent to 805.1 million EUR.
    • Food North America increased by 31.1 percent to 937.2 million EUR.
    • Food Rest of World increased by 8.5 percent to 115.6 million EUR.
  • Ebita increase of 15.8 percent to 224.8 million EUR.
    • Food Europe increased by 7.1 percent to 98.6 million EUR.
    • Food North America increased by 25.7 percent to 113.0 million EUR.
    • Food Rest of World increased by 8.1 percent to 13.2 million EUR.
  • Ebita increase of 13.0 percent to 219.4 million EUR using constant currency.
  • Food Group Ebita margin declined by 20bps to 12.1 percent.
  • Underlying fully diluted net profit increased 6.9 percent to 138.3 million EUR.
  • Underlying net profit conversion to cash 117.0 percent (January 2014: 93.2 percent).
  • Syndicated bank loan Net debt: Ebitda ratio of 2.49 times.

Origin

  • Revenue increased by 2.7 percent to 531.6 million EUR.
  • Ebita increased by 2.4 percent to 4.1 million EUR.
  • Contribution from associates and joint ventures decreased by (6.1) percent to 6.3 million EUR.
  • Underlying fully diluted EPS decreased by (2.2) percent to 0.058 EUR.

Group

  • Group revenue increased by 13.6 percent to 2.39 billion EUR.
  • Group Ebita increased by 15.5 percent to 229.0 million EUR.
  • Group Ebita margin increased by 20bps to 9.6 percent
  • Underlying fully diluted net profit increased by 6.6 percent to 144.5 million EUR.
  • Underlying fully diluted EPS increased by 5.9 percent to 1.614 EUR.