Aryzta eyes repositioning in Europe, Rest of World

SCHLIEREN, SWITZERLAND — Total revenues at Aryzta AG totaled €621.9 million ($760.7 million) in the third quarter ended May 1, down 3.5% from the same period a year ago. Results included €260.5 million ($318.6 million) in revenues from discontinued operations, which include the Aryzta North America business that was sold to Lindsay Goldberg in early May for $580 million.

Total revenues from continuing operations were €361.4 million ($442 million), up 1.4% from the same period a year ago. Aryzta Europe revenues totaled €302.9 million, while Aryzta Rest of World revenues were €58.5 million.

“The swift conclusion of the Aryzta North America disposal in the period and a resumption of organic growth underscores the progress being achieved in a short time,” said Urs Jordi, interim chief executive officer and chairman of Aryzta AG. “While Q3 revenue development was positive in terms of volume and price/mix for continuing operations across the majority of our markets, some have yet to turn positive and work is actively ongoing to accelerate this. The need for pricing to recover widespread inflation factors in new tenders and contracts is being addressed through active customer communication and proactive professional procurement pricing.”

Aryzta said dairy ingredients, flour and packaging account for approximately 50% of raw material costs, and all are experiencing “significant” price inflation.

Source link