Aryzta has said that its full year revenue performance and underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) is ahead of expectations, as management quickly implemented its simplification and de-layering process to remove the global cost structures and focus on its multi-local structures and decision making.
According to the Swiss-Irish firm's latest financial results, the company returned to positive organic growth in the second half of 2021.
The company said that Covid-19 had a material impact on the performance of the Group in all channels and geographies, 'particularly in our Foodservice and to a lesser extent, QSR channels.'
However, Aryzta said that it responded rapidly to the changed consumer environment through 'closely supporting its customers and efficiently calibrating its operational needs.'
This resulted in an improved sequential performance as the year progressed, with positive growth returning to all channels by the final quarter of the year.
Aryzta AG chairman and interim CEO Urs Jordi commented, “Aryzta begins its new fiscal year FY 2022 with a growing confidence having completely transformed the business strategy to a multi-local focus."
The company's total revenue from continuing operations decreased by 8.6% year-on-year, to €1.5 billion.
Organic revenue declined by 6.4%, with volume losses of 7.0% and a price/mix positive impact of 0.6%.
Total revenue, including discontinued operations, decreased by 20.9% to €2.3 billion in this period.
Organic revenue declined by 6.1%, with volume losses of 7.2% and a price/mix positive impact of 1.1%, due to the challenging
environment in the first half.
'Improved Operational Efficiencies'
Jordi noted that during the period the company had improved operational efficiencies and de-risked the financial profile.
Organic growth had returned after years of decline and the company expects to sustain this positive organic growth trend in its full year 2022.
"We have exceeded expectations in delivering on our disposal programme in terms of timing and level of proceeds," he said.
"This in turn has allowed us to agree a new five-year credit facility and to pay the accumulated deferred and current interest on our hybrids.
"Excessive costs of a global cost structure have been removed and local management is now empowered under our multi-local business strategy, which has greatly benefited confidence and morale.
"I want to personally thank all employees for their ongoing team efforts in rebuilding the business from the ground up. Sustaining this will ensure that we rebuild trust and credibility with our investors, lenders, customers and suppliers.”