Swiss bakery business Aryzta AG (ARZTF.PK,ARZTY.PK) Monday reported a 9 percent growth in revenue for the first quarter, benefiting from positive currency translation effect. The firm backed its full year profit forecast, despite challenging trading conditions.
The company’s CEO 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…Based on the Q1 performance, we continue to view the outlook and guidance issued with our 2012 full-year results as valid.”
The company said its previous outlook and full-year guidance of 5 to 10 percent growth in underlying earnings per share remains unchanged, despite the overall challenging trading conditions related to weak consumer dynamics.
For the 13 weeks ended October 31, revenue stood at 1.09 billion euros. Underlying revenue increase was 1.7 percent, while currency benefit was 6.4 percent. Acquisitions and disposals added 0.9 percent to revenue.
Total Food revenue grew 7.9 percent to 747.5 million euros, consisting of underlying growth of 0.9 percent from steady volumes and the lack of further price increases over the prior year, acquisition related support of 1.3 percent and favorable currency movements of 5.7 percent.
Food Europe revenue grew 1.6 percent to 321.2 million, amid challenging conditions reflective of the weak macro consumer dynamics in the region and widening government austerity measures.
Food North America revenue increased 12.3 percent to 367.5 million euros, benefiting from favorable currency movements of 9.8 percent, as well as a small bolt-on acquisition that contributed 1.2 percent growth.
Origin, Aryzta’s 68.8 percent subsidiary and separately listed company, reported a revenue improvement of 11.2 percent at 351.2 million euros.
The firm said its finance chief Patrick McEniff would take on the additional responsibility of Chief Operating Officer. He will start to develop the local management structures to facilitate the communication of the food and bakery innovation capability within Aryzta.
John Yamin, CEO of Aryzta North America, will become President and Global Food Officer. Yamin led the successful integration of the business in North America during 2012 and also helped La Brea Bakery to become a leading Artisan bread brand in the U.S.
Aryzta said this newly created role will lead Food innovation and engineering, Marketing and brand management, Global and Strategic customer relations, Human capital development as well as Corporate responsibility and sustainability.
The stock rose 0.9 percent in Zurich to close at 46.85 Swiss francs on Friday.
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by RTT Staff Writer
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