Pressure remains on Cuisine de France maker Aryzta as revenue remains flat
Aryzta, the Dublin-listed global food business has reported flat revenue of €975.2m for the three months to April 30, according to the group’s third quarter revenue update.
The group behind brands such as Cuisine de France and Shamrock Foods, continued to experienced difficult trading conditions in North America, where underlying revenue declined 4.3pc for the three months to April 30.
The decline however has slowed compared to the previous three months.
The group’s performance was better in Europe where food sales in increased 3.9pc year-on-year to €436.9m, with organic sales growth of 4.3pc.
The European business benefited from good underlying demand and a delay in the scheduled transfer of volume from a key customer in Switzerland.
However the company, which earlier this month confirmed the appointment of DAA boss Kevin Toland as CEO-designate, cautioned on Europe, saying that optimisation of its European capacity, in particular its factory in Germany “remains challenging and will take significantly more time to address than anticipated”.
Group revenue at Aryzta for the nine months to April 30 was €2.8bn, representing a decline in growth of 1.1pc on the previous year.
The €2.7bn food group continues to experience margin headwinds relating to negative operational leverage and labour issues in North America, however it did not elaborate on what these issues are.
It was confirmed in the revenue update that the board has appointed HSBC as its adviser in relation to an evaluation of alternatives for its 49pc investment in Picard which has been the subject of much speculation this year.