Aryzta loses long-term US contracts as revenue slips 3.3pc
Revenue at Swiss Irish food firm Aryzta has fallen by 3.3pc in the first quarter of the year as the company lamented losses in long-term US contract renewals.
The Cusine de France-owner posted total sales for the three months to the end of October of €962.3m.
Aryzta posted solid volume performance of 1.8pc in Europe during the period, however the gain in the European market was offset against currency volatility.
The firm's volume in the US fell by 5.7pc, which is said was driven largely by long-term contract renewal losses. Outside of the contract losses sales in the region fell by 1.9pc due to the timing of new business listings.
Chief executive Owen Killian said the revenue for the first quarter of its 2017 financial year was in line with expectations.
“The weaker underlying revenue development reflects the impact of expected contract renewal volume declines in North America, timing of new business listings, as well as a subdued European performance disrupted by consolidation of manufacturing activities in Germany.
"Aryzta remains focused on unlocking the underlying revenue development of its well invested assets and demonstrating its strong cash generating capacity. The material reduction in total group debt funding costs will provide EPS support for FY17. Our outlook for both free cash generation and for underlying fully diluted EPS remains unchanged," Mr Killian said.