Aryzta announces ‘extremely disappointing performance’ as revenue fall by 20pc
Shares in Swiss-Irish food maker Aryzta have plummeted after the company said revenues had fallen by 20pc in the five months to December.
Shares in the company dropped by 31pc on the back of the announcement.
Commenting on the announcement the CEO, Owen Killian, said: “The performance in the current period is both unexpected and extremely disappointing."
The figures are for the last five months of 2016 and, in a statement, the company said that the impact of Brexit, reduced revenue in the US and higher than expected labour inflation costs had impacted across the business.
In 2014 Aryzta spent $1bn (€730m) on US and Canadian acquisitions, including the US company Cloverhill bakery.
At the time Aryzta said the acquisitions would allow it increase its presence in the pastry consumer market in North America.
Aryzta reported 34pc of its North American revenue as branded as of July 2016 and its strategy is to grow this further.
However, its says that its US baked goods distribution company Otis Spunkmeyer’s branded strategy has triggered co-pack volume losses earlier than anticipated. “This resulted in significant negative operating leverage at the Cloverhill facility.”