SCHLIEREN, SWITZERLAND — Aryzta AG on May 4 outlined a series of measures it has undertaken since mid-March to maximize cash and cut costs during the coronavirus (COVID-19) pandemic.
As part of its efforts, Aryzta said it has paused production at eight baking plants — five in North America and three in Europe — since April 30. In addition, the company temporarily has closed more production lines within baking plants in order to reduce capacity in line with demand.
Approximately 30% of Aryzta’s workforce has been furloughed, including temporary staff, and future capital expenditures have been suspended with the exception of maintenance and health and safety, the company said. The initiatives have yielded savings of more than €50 million, Aryzta said.
Aryzta also said it has postponed future Project Renew programs where additional cash would be needed and is eliminating discretionary costs to the maximum extent possible.
The company also is utilizing government support actions across its regions, including partial reimbursement of salary costs, social security and pension payment deferrals, as well as payroll, corporation and other tax payment deferrals.
At the beginning of April, the executive management committee agreed to a three-month 30% salary reduction, while the broader leadership team agreed to a 15% salary reduction and the board of directors agreed to a 30% reduction in fees.
Aryzta said it has received consent from its lenders for a precautionary amendment of its financial covenants. As of April 30, Aryzta had liquidity in excess of €385 million, up from €360 million as of March 24.