Swiss-Irish bakery firm Aryzta has posted a 5.2% decrease in group reported revenue in the first quarter of its financial year, to 31 October.
However, this dip in revenue reflected the impact of disposals (5.3%) and currency (0.2%), the company said.
Revenue at the business was €862.3 million in the first quarter, of which its European operations reported approximately half, at €430.4 million.
Organic revenue rose by 0.3% in the period, with the company saying this reflects 'ongoing stabilisation across the business, despite commercial challenges'.
In terms of regional performance Aryzta Europe saw a 1.1% decline in Total Revenue in the period with Aryzta North America posting a 10.4% decline and Aryzta Rest of World seeing a 0.1% decline.
Addressing The Challenges
“During the first quarter we continued to work to address the challenges facing the business," commented Kevin Toland, Aryzta chief executive.
"We remain resolutely focused on our core, the frozen B2B bakery market and have the management team and resolve to implement what is a multi-year turnaround strategy."
Toland noted that the company recently completed a capital raise that generated estimated net proceeds of around €740 million, which the company will use to reduce debt and provide the capital to support its Project Review re-positioning programme.
"This stronger capital structure and improved liquidity will allow the management team to transition from a position of perceived commercial stress to a position of stability and instead to focus on strengthening our customer relationships, enhancing our operating efficiency, ongoing deleveraging of our balance sheet and, in time, returning the business to performance and growth.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
