Strong results expected from Aryzta

Swiss-based food group Aryzta will report full-year results today, and strong revenues are expected.

Davy Stockbrokers is forecasting earnings before interest, tax and amortisation of €541.6 million, an increase of 13.9 per cent year year on year; and diluted earnings per share of 399.3 cent.

Net debt is expected to increase by €642.9 million year on year to €1.5 billion, driven by net acquisition spend of €727 million and capital expenditure of €260.5 million.

Davy said Aryzta’s European bakery business has slowly repositioned itself in terms of its manufacturing and channel mix, with revenue of €1.5 billion expected.

In March, the company reported a 5.7 per cent increase in revenue to €1.59 billion, on the back of a 19.1 per cent jump in European sales. Earlier this month Aryzta agreed to acquire 100 per cent of both Pineridge Bakery in Canada and Cloverhill Bakery in the US.

On the subject of food, Irish fruit importer and grower Fyffes will hold its EGM this Friday for shareholders to vote on the proposed merger with Chiquita. The meeting was due to take place in September but was adjourned. Chiquita also postponed its shareholder meeting until this Friday.

Fyffes last month granted a "waiver" to Chiquita allowing it to engage in discussions with the Cutrale Group and the Safra Group. The companies have since signed a confidentiality agreement to give Cutrale and Safra time to complete due diligence and make a definitive offer.