Aryzta stock slump wipes €250m more off shares
Shares in food producer Aryzta suffered further losses yesterday as investors ditched the stock in the wake of a profit warning issued on Tuesday.
The latest plunge in shares knocked a further €250m off the value of the stock. That was in the wake of Tuesday's share price collapse of more than 30pc, which had wiped €1.1bn off the value of the company.
Tuesday's announcement had sent investors scrambling to sell their holdings.
The company said that revenues for the final five months of last year were down 20pc and admitted the trend was likely to continue over the course of the year.
In addition, Aryzta stated that some of its latest acquisitions were now losing money in the US.
The results have hiked pressure on Aryzta chief executive Owen Killian, the driving force behind the expansion.
Aryzta's board withheld Mr Killian's bonus in October of last year due to the company's underwhelming performance.
On Tuesday, Mr Killian said he was "extremely concerned... in terms of where we are today in terms of issuing a profit warning of this magnitude, which was totally unanticipated".
He acknowledged it would take a period of recovery and sustainable growth before investor sentiment could turn around.
For now, the stock continues to trend downwards, with confidence in the company at a low.