Aryzta AG: announces H1-2019 Revenue Update

Zurich / CH. (aag) Swiss-Irish Aryzta AG announces financial results for the six month period ended 31 January (H1/2019). The company is on track to deliver within its previously guided range for the current financial year, Aryzta said in its statement.

Strategic, Financial and Operational Highlights

• Strategic
  • First step towards delivery of multi-year turnaround commitment
  • Developing a unified, cohesive Group with singular focus on core strengths
  • Project Renew launched; seeing early benefits
    • delivered 7.6 million EUR savings in H1/2019
    • H2/2019 will see required step-up to deliver targeted 40 million EUR run-rate savings

• Operational
  • Ongoing organic revenue stability in the period
    • Europe benefitting from ongoing price/mix improvement and organic volume growth
    • North America remains challenging; QSR channel stable
    • Rest of World solid performance offset by currency

• Financial
  • Completed capital raise with net proceeds of 740 million EUR, which
    • strengthened Aryzta’s balance sheet
    • provided necessary liquidity and working capital funding
    • enables the financial flexibility and time to deliver on Aryzta’s 150 million EUR multi-year reorganisation plan, Project Renew

H1/2019 Financial Summary

• Group organic revenue growth of plus 0.7 percent; total revenue declined (4.2) percent to 1,710.7 million EUR
• Europe organic revenue growth of plus 1.9 percent
• North America organic revenue decline of (1.8) percent
• Rest of World organic revenue growth of plus 6.7 percent
• Underlying Ebitda of 151.6 million EUR, a decline of (6.0) percent
• Underlying Ebitda margin stabilising at 8.9 percent, (10) bps decline
• Net Debt of 811 million EUR with Net Debt: Ebitda of 2.5x
• Hybrid financing of 834 million EUR including 60 million EUR of deferred hybrid dividends
• Underlying net profit of 39.5 million EUR, a decline of (22.5) percent
• IFRS operating profit of 10.8 million EUR; IFRS operating loss of (194.0) million EUR in H1/2018
• IFRS loss for the period of (4.3) million EUR; IFRS loss of (197.0) million EUR in H1/2018

Chief Executive’s Commentary

Chief Executive Officer Kevin Toland: «The result in H1/2019 is consistent with our focus on stability. This performance represents a first step towards the delivery of our multi-year turnaround commitment. We are developing a unified, cohesive Group with a singular focus on our core strengths within a growing frozen B2B bakery market. Project Renew will enhance both our operating efficiency and our competitive position and in H1/2019 already delivered the expected level of savings. Our focus on delivering excellence for our customers every day will also contribute to performance and, in time, growth.»