aryzta Archives - Ireland's Forecourt & Convenience Retailer

Cuisine de France parent returns to profit following restructuring

Linda Stewart — Mon, 03 Oct 2022 09:48:20 +0000

Swiss-Irish baking group Aryzta moved into profit last year following significant restructuring of the business, according to the company’s annual report.

The group, which owns the Cuisine de France brand here and supplies the likes of McDonald’s and Subway, published its report and results for the year ended July 30th, 2022, on Monday.

It shows the group made an overall profit of €900,000 for the period, which was a turnaround from a loss of €235.8 million the year before.

“This reflected the benefits of the significant changes and reorganisations made over the past two years to reduce costs, simplify the organisation structure and focus on profitable organic growth,” the group said.

“The strong performance was achieved against a backdrop of supply chain disruption and significantly higher cost inflation especially energy.”

Total revenue increased by 15.1 per cent to €1.8 billion, with businesses accounting for 60 per cent of group revenue, exceeding pre-Covid revenue levels at constant currency.

Group organic revenue growth of 17.9 per cent, was driven by strong volume growth of 12 per cent supported by price/mix growth of 5.9 per cent.

On a regional basis Aryzta Europe revenue increased with an organic growth of 19.3 per cent. Aryzta Rest of World organic revenue increased by 10.5 per cent. All channels performed strongly achieving double digit organic growth.

However, the group cautioned that “significant inflation challenges remain” as war, supply chain disruptions and elevated demand drive inflation across all inputs. “Little respite in these trends is expected in the near term and further price increases are expected,” it said.

Aryzta chairman and interim chief executive, Urs Jordi, said he expected the company’s performance to improve further in the coming year.

“I am pleased to report that Aryzta has achieved an underlying net profit of €45.6 million in 2022, the first profit for many years,” he said. “This reflects the benefits of the significant business performance acceleration and structural and operational changes undertaken.

“The consolidation of our business model has significantly progressed and we are improving on all levers of value creation. This has supported the significant improvements in our financial position during the past year.

“Aryzta has lower total net debt. While being in the middle of a challenging period of cost inflation, nevertheless, we expect to report further improvements in our performance in full year 2023.”

The Aryzta board also announced Mr Jordi has agreed to continue as interim CEO of the group until December 31st, 2024, when the board will have selected a permanent candidate for the role.

“The board extends its appreciation to the chairman for agreeing to continue with the dual mandate,” it said.

In terms of outlook, Aryzta said current trading trends “remain unchanged despite the challenging macro environment and the recently published mid-term guidance for the period 2023-2025 is reiterated”.

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Aryzta’s Q3 revenues up 20% amid a ‘return to normal’

Linda Stewart — Mon, 30 May 2022 09:35:39 +0000

Irish-Swiss food group Aryzta has reported an increase in revenues for its fiscal third quarter.

Aryzta said its total continuing revenue increased by 20.1% to €433.9m in the third quarter. The company said its strong organic performance was driven by volume growth of 15.6% and price/mix improvement of 7%.

Meanwhile, total continuing revenue in the nine months to date increased to €1.269 billion.

The company, which owns the Cuisine de France brand, said the increase was driven by a strong organic performance of 16.3%, comprising volume growth of 12.7% and a price/mix contribution of 3.6%.

During the third quarter, Aryzta said its Europe division performed very strongly with a 25.6% organic revenue growth. While all markets achieved growth, the performance in France, Germany and Fornetti was particularly strong, it noted.

It said its Rest of World division saw solid organic revenue growth of 7.2%, evident across all markets with Malaysia and Japan both outperforming.

Aryzta said that inflationary pressures remain, with limited respite expected in the near term, resulting in more frequent pricing and the use of temporary surcharges.

Aryzta chair and interim CEO Urs Jordi said that while the third quarter organic growth performance was strongly volume driven, significant progress was also achieved in terms of positive pricing and mix contributions.

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Aryzta to double its sourdough bread capacity at Dublin bakery

Linda Stewart — Fri, 15 Apr 2022 09:21:35 +0000

Irish-Swiss baked foods group Aryzta says it will double its sourdough and specialty bread capacity at its Grange Castle bakery in Dublin, following the installation of a new manufacturing plant which is close to completion.

The Cuisine de France brand owner said demand for sourdough bread has shown significant growth in recent years, with consumers across the Irish and UK market constantly looking for new, complex and exciting taste profiles for bread.

It said innovation will be a key driver in satisfying these demands and this expansion aims to meet these needs by providing a diverse range of delicious breads.

ARYZTA recently welcomed guests and employees to the launch event for its new production line in Grange Castle, Co. Dublin, including members from Bord Bia, Enterprise Ireland and Love Irish Food.

The latest investment, supported by Enterprise Ireland, will expand its state of the art sourdough starter plant and the bakery will be doubling its capacity for sourdough and speciality breads.

“This expansion is an important step on the Aryzta journey to premiumise our bread range and to align the business with the consumer demand for breads with high nutritional value, fiber, seeds, grains and of course sourdough,” said Anthony Proctor, Managing Director of Aryzta Ireland/UK.

All of the speciality and sourdough breads produced at the Grange Castle bakery are made using a perpetual live starter.

The company says the starter is unique because it has 30 years of heritage in the business and is continuously used and then regenerated on a daily basis. This starter gives ARYZTA its uniqueness and distinctive flavour for the premium sourdough breads.

This announcement follows the 2020 Grange Castle investment which saw the installation and commissioning of its “Next Generation Stress Free French Bread” baking capability, producing high quality French bread.

Caption: Anthony Proctor, Managing Director ARYZTA Ireland/UK, Kieran Rumley, CEO Love Irish Food, Tara McCarthy, CEO Bord Bia and Leo Clancy, CEO Enterprise Ireland.

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Food group Aryzta sees revenue grow despite rising costs

Linda Stewart — Mon, 07 Mar 2022 10:40:35 +0000

Swiss-Irish food group Aryzta has announced organic revenue growth of 13.3% in the six months to January, reflecting a bounceback in foodservice since Covid restrictions eased.
Despite rising cost and supply chain pressures, the Zurich-based group, which owns the Cuisine de France label here and supplies McDonalds and Subway, said the performance was driven by volume growth of 11.3 per cent as “society normalisation took hold”.
The company, which delisted from Euronext Dublin last year, said its earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €104m, reflecting growth of 36.7pc as Covid restrictions eased.
The group’s underlying EBITDA margin increased by 240 basis points to 12.5pc on the back of volume and price growth and “disciplined cost management”.
Aryzta’s food service business grew 30.7pc in the period, with growth also recorded across its quick serve restaurants and retail business.
Growth in Europe was 14.3pc on the back of the reopening, while Aryzta’s markets in the rest of the world saw growth of 7.7pc, impacted by ongoing restrictions in Australia and New Zealand.
The disposal of Aryzta’s Brazil business impacted revenues, but a more than doubling of manufacturing capacity in Malaysia in February is boosting growth expectations this year.
“Organic growth accelerated due to strong volume growth and further positive pricing to support a double digit revenue growth performance,” Aryzta chairman and interim chief executive Urs Jordi said.
“Profitability also improved, reflecting the benefits of our simplified structure, disciplined cost management and strong organic growth, despite supply chain volatility and significantly higher input costs.
“Management is focused on sustaining the improved business momentum as well as its financial performance to further build a sustainable organic growth driven business.”

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