Aryzta AG: announces strong liquidity position at FY-2020 end

Zurich / CH. (aag) Swiss-Irish Aryzta AG announced its financial results for the year ended 31 July (FY-2020). Reflecting the impact of Covid-19 pandemic, Group organic revenue declined by -11.6 percent; total revenue declined by -13.4 percent to EUR 2,931 million. Commenting on the FY-2020 results, Chief Executive Officer Kevin Toland said: «Covid-19 has impacted the lives of people across the world. It has also strongly impacted our FY-2020 results but, whilst prioritising the health and safety of our colleagues, customers and suppliers, we have been able to navigate the company through these challenging times.»

FY-2020 Highlights

• Group organic revenue declined by (11.6) percent, reflecting impact of Covid-19 in H2
• The effect of the Covid-19 pandemic had a material impact on underlying Ebitda generation driving negative operating leverage in H2
• Economies re-emerged from lockdown in H2 at varying speeds and concerns remain about a second wave of restrictions in some countries
• Management has taken decisive action to maximise cash and reduce costs
• Gradual sales improvement with monthly revenue evolution tracking (18) percent in July versus (23) percent in June, (36) percent in May and (49) percent in April
• Improvements have been seen in the QSR and Retail channel but Foodservice remained subdued due to continued restrictions in key markets
• Strong liquidity position of EUR 424 million, consistent with guidance that Aryzta would finish the year with good overall liquidity
• Before the Covid-19 crisis, five out of six strategic indicators were on track and portfolio refocus into B2B bakery achieved with the disposal of 43.1 percent of Picard

FY-2020 Financial Summary

• Group organic revenue declined by (11.6) percent; total revenue declined by (13.4) percent to EUR 2,931 million
  • Europe organic revenue decline of (12.7) percent
  • North America organic revenue decline of (11.8) percent
  • Rest of World organic revenue decline of (3.5) percent
• Underlying Ebitda of EUR 260 million decreased by (15.4) percent and by (33.0) percent like-for-like before IFRS 16
• Underlying Ebitda margin decreased by (20) bps to 8.9 percent, like-for-like declined by (210) bps before IFRS 16
• Underlying net loss of EUR (18) million versus underlying net profit of EUR 74 million in FY19
• Operating free cash generation of EUR (85) million, with negative cash flow generated from activities of EUR (134) million due to cash outflow in H2
• Net Debt of EUR (1,011) million 1 and Net Debt: Ebitda 2 ratio 3.68x
• IFRS operating loss of EUR (774) million; compared to IFRS operating profit of EUR 5 million in FY19
• IFRS loss for the year of EUR (1,092) million compared to IFRS loss of EUR (29) million in FY19; non-cash impairment charges and losses on disposal of EUR (988) million, mostly coming from the North American region
• IFRS fully diluted loss per share of (114.8) cent versus (8.3) cent in prior period

For additional information please read the company’s PDF file below (143 KB):

20201006-ARYZTA-FY-2020.