Aryzta's revenues increase 2.5% to €3.2bn

REVENUES AT Dublin- and Zurich-listed food group Aryzta rose by 2.5 per cent to €3.212 billion for the year ended July 2009, according to results posted yesterday.

The company, formed in 2008 as the result of a merger between Irish food group IAWS and Swiss baker Hiestand, posted EPS of 234.7 cent, a rise of 16 per cent on the previous year, beating most analysts’ expectations.

Revenue at its food division, which focuses on specialist bakery products, grew by 4.7 per cent to €1.713 billion year on year, although growth was 1.9 per cent when acquisitions and the effect of currency exchange are allowed for. Operating profits were up 15.4 per cent to €218.5 million.

However, in a statement yesterday, Aryzta said the recession was reflected in its underlying revenues, which swung from double-digit growth to a decline in the 12-month period.

Revenues at its European division fell by 2.4 per cent, but operating profit grew by 11.4 per cent.

The company said that the division faced tough trading conditions in the financial year 2009, with its Irish and UK businesses particularly affected by the downturn. However, its continental European business was “resilient” during the financial year.

Aryzta’s North America unit saw an increase of 22.5 per cent in revenue to €551.1 million. However, the division “was not able to escape the general recessive trend, exhibiting declining revenue growth in each quarter with most channels experiencing declining revenues”, it said.

Nonetheless, operating profit in its North American division grew 30.1 per cent to €67.5 million, boosted mainly by a strong performance by cookie company Otis Spunkmeyer, although sales at bakery company La Brea were “resilient”.

Yesterday’s results include the end-of-year results for Origin, a food company in which Aryzta has a majority shareholding and which accounts for 27 per cent of Aryzta’s overall group profits. Yesterday, Origin posted operating profits of €75.7 million for the year ending July 2009.

It proposed a dividend payout of 35.2 cent per share to shareholders. Aryzta’s closed 1.4 per cent higher yesterday on the Irish stock exchange at €27.59.

Aryzta: 2009 results (year end - July)

Revenue: €3.2 bn (+2.5%)

Operating profit: €280.5 m (+14.4%)

Net profit: €54m (-58%)

Earnings per share: 234.7 cents (+16%)

Dividend per share: 35.2 cent

SUMMARY

Revenue in its European foods business fell by 2.4 percent, with its UK and Irish businesses particularly hit by the economic downturn. Its American food business saw revenues climb 22.5 per cent to €555.1 million.