Aryzta's reported revenue in its third quarter was €644.2 million, representing a 21.5% organic decline versus the same period last year, as the effects of COVID-19 impacted revenue, particularly in the second half of March and in April.
Quarter three trading patterns had been in line with guidance up until 15 March, according to its latest financial results, ended 30 April 2020.
The Swiss-Irish baker said that market conditions and prospects deteriorated sharply since that date, leading to a negative organic revenue evolution of 49% in April.
It is now clear that COVID-19 will have a material impact on group performance in in full year 2020 results, the company said.
The Cuisine de France owner noted that since mid-March the group took decisive actions to maximise cash and reduce costs, resulting in increased liquidity since the beginning of the crisis.
"At Aryzta, while prioritising the health and safety of our colleagues, customers and suppliers, we have taken decisive action to protect the business and our cash resources," said Kevin Toland, chief executive officer, Aryzta.
"Our Q3 revenue has been strongly impacted by the pandemic but our facilities and products are positioned to recover and compete as economies stabilise and return to growth," he added.
Last month, the company announced a three-month 30% salary reduction for the executive management committee, a 15% salary reduction for the wider leadership team and a 30% reduction in fees for the board of directors has been implemented.
'All cost actions are being kept under constant review,' it added.
Veraison and Cobas Asset Management
On 14 May, investors Veraison and Cobas Asset Management said that Aryzta AG 'should make changes to help boost its share price', as they announced a tie-up that encompasses 17.3% of shares.
"The two shareholders have joined to actively support improvements in the company," Swiss-based Veraison said in a statement.
"Trust in Aryzta must be rebuilt. Only in this way can Aryzta create value for all stakeholders again."
Among other things, they called for reducing complexity of the group and more-focused activities.
Cobas, Aryzta's largest shareholder, has been pushing for changes since at least 2018, as the bakery company's stock has fallen about 97% over the last five years.
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