Half-year revenue at the Swiss-Irish baked goods group Aryzta rose by 5.5% to €1.96 billion, according to the company’s latest results.
The figures show that for the six months to the end of January food revenue increased across most of the group’s key regions.
Food Europe's revenue was 9.5% higher to €881.7m, whereas the figure for North America was €971m, an increase of 3.6%.
However, Rest of the World food revenues declined 7.2% to €107.3m.
Aryzta’s earnings before interest, taxes, and amortisation for the period increased 2.7% to €230.8m.
EBITA in Europe was 6.8% higher, however, North America showed modest growth (+0.1%), while for the Rest of the World there was a 6.8% fall.
Associate and joint ventures contributed €13.7m to earnings in the six month to the end of January, which was in-line with expectations.
Commenting on the results, Aryzta CEO Owen Killian said: “Underlying revenue growth momentum continued to improve, although still 18 - 24 months behind prior expectations"
“Underlying net profit from continuing operations remains flat. Speciality food is a growth segment of the overall food market in Europe and North America where consumer demand was positive in the period. ARYZTA is well-invested and well-positioned to grow, because its recently invested infrastructure is the most relevant and most competitive for this market.”
Mr Killian admitted revenue development “has been erratic for the past 12 months and will be for a further 18 months as we commission and optimise our capacity”.
“During this period, customer insourcing in Europe and contract renewal in North America will negatively impact revenue by circa 3%, as previously indicated,” he added.
The market response to Aryzta’s half yearly results has been largely negative, with the company’s shares dropping sharply in Dublin trade.
