Aryzta admits "disappointing year" as net profit drops almost 5pc to €360m
Underlying net profits at Swiss-Irish bakery group Aryzta dropped to €360m in the 12 months to the end of July, a fall of 4.7pc.
According to the company's results for its 2015 financial year despite a 12.6pc increase in sales to €3.8bn underlying revenue also dropped by 2.2pc.
The company's European division recorded a 3.8pc increase in revenue with 1pc underlying growth although its North American operations saw a 6.2pc underlying decline, despite overall revenue increasing by 22.4pc to almost €2bn.
The rest of the company's operations recorded the strongest rate of underlying growth, of 3.3pc, while revenue increased 4.7pc to €231m.
Earnings before deductions were up by 5.7pc to €514m while underlying net profit from the group's continuing operations rose 1.7pc to €330m.
Underlying fully diluted earnings per share from continuing operations increased by 1.6pc to 368.9 cent, although overall underlying fully diluted EPS on a group basis was down by 4.7pc to 402.2 cent.
Aryzta chief executive Owen Killian said that the company has been in "constant evolution to remain relevant to consumers as changing consumer trends negatively impacted parts of our business. This involved significant capital investment of €1.3bn and acquisitions of €2.4bn to reposition the business since FY 2010."
He added: "FY 2015 has been a disappointing year for shareholders as underlying revenue growth failed to materialise, resulting in negative operating leverage.
"Our focus is now on delivering the underlying revenue growth potential of the business, which is expected to generate a tenfold expansion in free cash generation in FY 2016 to €200m+ and building further thereafter. We expect to achieve underlying fully diluted EPS in the range of 365-385 cent for FY 2016.”