Cuisine De France owner Aryzta has posted a 4.2% decrease in total revenue to €1.71 billion, in the first half of its financial year, for the six month period ended 31 January 2019.
Group organic revenue was up 0.7% in the period, however, driven by a positive performance in Europe (+1.9%), while North America organic revenues slipped back 1.8%.
The Swiss-Irish group’s posted underlying EBITDA of €151.6 million, a decline of 6.0%, while underlying net profit was €39.5 million, a decline of 22.5%.
The McDonalds burger buns maker said that the performance marks the ‘first step towards delivery of a multi-year turnaround commitment’, with its organic revenue growth demonstrating ‘ongoing stabilisation’.
“The result in H1 2019 is consistent with our focus on stability," said Kevin Toland, chief executive
This performance represents a first step towards the delivery of our multi-year turnaround commitment,”
“We are developing a unified, cohesive Group with a singular focus on our core strengths within a growing frozen B2B bakery market".
Last year the group announced its plans to implement Project Renew, its competitive re-positioning programme.
"Project Renew will enhance both our operating efficiency and our competitive position and in H1 2019 already delivered the expected level of savings.” Toland explained.
As part of implementing Project Renew, Aryzta said that it expects to commit a total of €150 million over the next three years to deliver €200 million worth of savings.
Approximately two-thirds of the €150 million investment will be in automation capex, Aryzta said, with the remainder invested in non-recurring restructuring costs.
Looking ahead to the full year, Aryzta said that it is ‘on track’ to deliver within its previously guided range.
“Our focus on delivering excellence for our customers every day will also contribute to performance and, in time, growth,” Toland added.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.