Acquisitions help drive revenue gains at Aryzta
by Eric Schroeder
ZURICH, SWITZERLAND — Revenue for Aryzta AG rose 24% to €1,022.1 million ($1,493 million) in the third quarter ended April 30, driven by sharp gains in the company’s Food Rest of World and Food North America divisions as a result of acquisitions.
For the nine months ended April 30, revenue was €2,916.4 million ($4,261.4 million), up 32% from the same period a year ago.
“We have doubled bakery output as a result of the acquisitions announced just one year ago (Fresh Start Bakeries and Great Kitchens) resulting in a 55% increase in food revenue in the 9 months while maintaining continued investment grade status,” said Owen Killian, chief executive officer. “We are encouraged by the underlying revenue trends that show modest growth, reflecting a fragile recovery in consumer activity in most markets. Food raw material inflation has continued and shows no signs of abating.
“The group has an ongoing program of dynamic pricing and we are working closely with our customers to mitigate the impact of pricing on the consumer through product innovation, product selection and service model efficiencies.”
Revenue in Food North America rose by 129% in the third quarter to €310.6 million ($453.9 million). Acquisitions contributed 123 percentage points of the growth, Aryzta said.
“The positive trend in underlying revenue growth has been most evident in the retail and quick-service restaurant segments of the Food North America market,” the company said. “There is evidence that the wider food service market in North America is showing signs of recovery.”
For the nine months ended April 30, revenues in Food North America were up 136% to €921.2 million ($1,346.3 million).
Food Europe revenue was up 14% in the third quarter, to €296.1 million ($432.7 million), while Food Rest of World revenue soared 480% to €45.1 million ($65.9 million).