ZURICH, SWITZERLAND — Revenues in the Food North America division of Aryzta totaled €473.5 million ($528.9 million) in the third quarter ended April 30, down 7% from the same period a year ago.
“While sequential recovery in North America underlying revenue continues, underlying revenue growth declined by 2.3% in the period,” the company said. “Disposals, net of acquisitions, reduced revenue by 2.8%, and currency movements reduced revenue by 1.9%. The specialty bakery segment in which Aryzta operates continues to display attractive growth opportunities, and the market response to the increased investment in La Brea Bakery and Otis Spunkmeyer brands remains positive. In addition, the s.k.u. (stock-keeping unit) rationalization completed in H1.”
Aryzta said all supply contracts have been signed, which has significantly increased its revenue visibility. Excluding revenue with customers affected by contract renewals, Aryzta said underlying revenue growth in North America was 4.7% in the quarter, driven largely by new food items.
“This demonstrates the success and relevance of the customer centric business model,” the company said.
Overall, total group revenue in the third quarter totaled €949.8 million ($1,060 million) at Aryzta, down 2.4% from the same period a year ago. For the nine months ended April 30, revenues were €2,909.9 million ($3,250 million), up 2.8%.
|Owen Killian, c.e.o. of Aryzta|
“Q3 revenue development confirms an improving trend in all regions,” said Owen Killian, chief executive officer. “All outstanding long-term contract renewals are now signed, adding greater visibility to our revenue and validating Aryzta’s investment in the long-term customer partnership model.“H2 margin weakness remains in line with expectations and guidance. We have identified further potential for group-wide efficiencies and cost reduction initiatives. These will enhance our future competitiveness in a market that continues to demonstrate attractive growth.”