DUBLIN: Revenues at Swiss-Irish food group Aryzta fell by 2.4 per cent to € 949.8 million in the three months to end April 30th 2016, as the group reiterated its full-year EPS targets.
Aryzta chief executive Owen Killian said Q3 revenues “confirm an improving trend in all regions”.
“H2 margin weakness remains in-line with expectations and guidance. We have identified further potential for improved group-wide efficiencies and cost reduction initiatives. These will enhance our future competitiveness in a market that continues to demonstrate attractive growth. However, these initiatives will lead to incremental onetime cash non-recurring costs in FY 2016. We expect to report underlying fully diluted EPS broadly in-line with consensus and to generate free cash in excess of € 200m in FY 2016,” he said.
Revenue fell by 2.4 per cent in the quarter to € 949.8 million, while underlying revenue growth was 0.9 per cent. Disposals, net of acquisitions, reduced revenue by 1 per cent and currency movements reduced revenue by 2.3 per cent in the quarter.
In Europe, revenue grew by 3.6 per cent in the quarter to € 420.3 million. Underlying revenue growth increased 3.9 per cent in the quarter.
In North America, revenue declined by 7 per cent in the quarter to € 473.5 million. Disposals, net of acquisitions, reduced revenue by 2.8 per cent and currency movements reduced revenue by 1.9 per cent.
In the group’s rest of the world division, revenue declined by 3.4 per cent in the the quarter to € 56 million, although underlying revenue growth was strong at 7.5 per cent.
Looking ahead, Aryzta reiterated its guidance for full-year EPS, which is expected to be in-line with company collected consensus of 355.5 cent. Free cash generation is expected to exceed € 200 million, in-line with guidance, Aryzta said.
