SCHLIEREN, SWITZERLAND — Aryzta is reopening baking plants across its global network even as keeping all costs under control “to the maximum extent possible” remains a key priority, the Swiss-based company noted in a June 30 revenue and liquidity update. Aryzta said it continues to adjust its business to reflect changes in the economic environment.
Aryzta said it has experienced steady improvement in revenues. In North America, the signs of recovery have been concentrated in the quick-service restaurant (QSR) and retail channels in the region, while foodservice remains negatively impacted by coronavirus-related restrictions. Meanwhile, in Europe most economies are beginning to reemerge from lockdown at varying speeds, which Aryzta said is driving an improving weekly revenue trend. Specifically, QSR and in-store bakery are gradually improving while foodservice and convenience retail channels continue to be negatively impacted due to work- at-home and lower tourism across the region.
Beginning in mid-March, Aryzta took action to protect and maximize liquidity in its business. Actions included pausing production in bakeries to reduce capacity in line with demand, furloughing headcount, availing of government relief initiatives, suspending capital expenditure and eliminating discretionary cost to the maximum extent possible.
Aryzta said its efforts are being kept under “constant review,” and the company expects a bumpy recovery over the next several months.
As some markets have loosened restrictions, Aryzta said it has begun to adjust production. In North America, only one baking facility is still fully paused, which compares with five that were paused as of April 30, and 90% of the company’s lines are operational. In Europe, only one baking plant is fully paused, which compares with three on April 30, and approximately 80% of production lines are operational.
Aryzta also has cut back on the number of employees on furlough. As of June 30, approximately 22% of Aryzta’s workforce was furloughed, which compared with 30% on April 30.