ZURICH, SWITZERLAND — Positive consumer response to new concepts involving the La Brea Bakery and Otis Spunkmeyer brands contributed to a first-quarter revenue increase of 5.2% in the Food North America unit of Aryzta AG. Underlying revenue growth, though, fell 5.6% during the quarter.
“The Q1 underlying revenue performance remains negative and as indicated in September, is not expected to turn positive until the second half of the current fiscal year,” Aryzta said in a Nov. 30 sales trading statement. “Improved utilization and volumes are required to offset the negative operating leverage experience reported in F.Y. 2015.”
Aryzta said the consumer response to initial testing of some consumer brand concepts involving La Brea Bakery and Otis Spunkmeyer “has been encouraging.”
“Aryzta will invest further in marketing and innovation in F.Y. 2016 to ensure future relevance and success,” the company said. “The benefit of this investment will be seen in greater brand penetration and underlying revenue growth going forward.”
As part of the revenue update, Aryzta disclosed the disposal of its non-core fillings, icings, glazes and mixes business in Rochester, N.Y. The revenue being disposed in F.Y. 2016 is $70 million, the company said.
Total group revenue at Aryzta increased 6.1% during the first quarter, with currency movements of 5.8 percentage points, acquisition growth of 0.1 points and negative underlying revenue growth of 0.4 points.
|Owen Killian, c.e.o. of Aryzta|