Aryzta AG: revenue falls in Q3/2010

Zurich / CH. (aag) Aryzta AG announces its third quarter trading update for the 13 weeks ended 30 April 2010. The Group said revenue for the 13 weeks fell 4,6 percent to 823 million EUR. It said in a statement it expected an increase in underlying EPS for 2010 over 2009. Commenting on the performance and the acquisitions (see «Acquisitions double manufacture volumes») CEO Owen Killian said:

«The business continues to respond well to what are still very challenging economic conditions for consumers. We are working hard with our retail and foodservice partners to provide freshly baked and conveniently prepared high quality baked goods at affordable prices. We are very pleased to have secured two excellent complementary businesses in Fresh Start Bakeries and Great Kitchens which substantially enhance the Strategic Market Position of Aryzta AG. From a business perspective we will operate with a greater geographic footprint and with much better channel access to consumers. These acquisitions double our manufactured volumes with an additional 30 production locations in nine countries. On 09th June 2008 Aryzta set out objectives to ‘double the earnings base within five years’. These acquisitions represent an important milestone for our shareholders on that journey».

Revenue for the nine months ended 30 April 2010 (unaudited)

Outlook

Aryzta´s revenue growth through the third quarter attests to the ongoing impact of the global consumer downturn. However the rate of decline has moderated in recent quarters. At the half year, the company reiterated its prior guidance on underlying EPS of 224 cent. Subsequently, three developments have combined to offer a more positive outlook. First, there has been a modest improvement in the Group´s operating environment. Second, the acquisitions announced today are anticipated to be accretive to EPS in the fourth quarter. Third, changes in relative exchange rates may have a positive impact on full-year earnings. These developments lead the company to now anticipate an increase in underlying EPS for 2010 over 2009. In June 2008, management set out its target to double the earnings base within five years, and this remains a core objective. Aryzta maintains a relentless focus on delivering shareholder value through maximising cash generation and operating efficiencies. Moreover it is well capitalised for further growth through strategic acquisitions.

Info: Third Quarter Trading Update for the period ended 30 April 2010 – and Announcement of Strategic Acquisitions (PDF; seven pages; 141 KB).