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Revenue up but profits dip at Aryzta

Monday, March 11 10:25:27

Irish-Swiss bakery business, Aryztz, today reported a decline in first-half profit, reflecting higher costs, but a rise in revenues while it remains upbeat about prospects for 2013.

Revenues for the six months to the end of January, rose 8.2 percent from last year. Looking ahead, the company expects to return to double-digit underlying earnings per share growth in fiscal 2014.

In the six-month period, profit attributable to equity shareholders declined to 62.05 million euros from 71.86 million euros in the previous year. On a per share basis, earnings were 60.9 euro cents, lower than 75.6 euro cents per share reported last year.

Net acquisition, disposal and restructuring related costs and fair value adjustments totalled 44.5 million euros, up from 24.75 million euros a year ago. Excluding items, underlying earnings per share for the recent half year was 146.4 euros cents, while the company posted 145.6 euros cent last year.

EBITA increased 4.2 percent to 186.3 million euros.

Owen Killian, chief executive officer of the company stated, "Aryzta's underlying net profit performance was robust despite challenging trading conditions. Good progress on net debt reduction was also achieved despite significant ATI related investments."

It was in September 2011, that the company announced a three year plan to invest 400 million euros in Aryzta Transformation Initiative ATI. Aryzta expects to complete its ATI programme in fiscal 2014.