Aryzta has ‘turned financial corner’ despite annual loss of €235m

Urs Ernst Jordi, interim chief executive officer of Aryzta

Group sold its troubled North American arm for $850 million (€711 million) earlier this year

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5 October 2021 | 0

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Continuing the battle to reverse its financial fortunes, Swiss-Irish food group Aryzta reported a loss of €235.8 million for the year to the end of July. This was down from a loss of €1.09 billion the previous year.

The Irish Times reports the group saw revenue drop by 8.6% to €1.5 billion, as a result of Covid-19 affecting foodservice and quick service restaurant (QSR) sales.

Despite this, the group said the results exceeded expectations and that it had successfully “de-risked” its financial profile through a continuing process of cost reduction and asset disposal.

The group added that underlying earnings for the year were €173.4 million, representing only a 8% drop on the previous year.

“The retail channel proved resilient in the period,” Aryzta said.

Earlier this year, the company was boosted when it sold its troubled North American arm to US private equity firm Lindsay Goldberg for $850 million (€711 million) in a deal that interim chief executive Urs Jordi described as an “ inflection point” and a vindication of its “simplification strategy”.

“Aryzta begins its new fiscal year 2022 with a growing confidence having completely transformed the business strategy to a multi-local focus,” Jordi said of the company’s latest results.

“Organic growth has returned after years of decline and expect to sustain this positive organic growth trend in 2022,” he added.

Nevertheless, the group warned that the bakery industry is experiencing significant inflation in raw materials, logistics, labour and services.

“Aryzta has a well-structured and professionally managed procurement process whose sole aim is to protect margins and ensure all tender pricing recovers cost inflation,” the group added.

 

 

 

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