Aryzta optimistic about improving operational efficiency | 2021-10-07
SCHLIEREN, SWITZERLAND – Aryzta AG’s performance for fiscal 2021 has exceeded expectations as the Swiss company implemented its simplification and delamination process to remove global cost structures and focus on its multi- local authorities and its decision-making.
Underlying EBITDA from continuing operations totaled 173.4 million euros ($ 202.5 million) for the year ended July 31, down 8% from 188.3 million euros in fiscal year 2020. Group sales fell almost 9% to 1.53 billion euros (1.77 billion euros) from 1.67 billion euros euros.
In fiscal 2021, Aryzta sold its North American bakery business (now operating as Aspire Bakeries) to private equity firm Lindsay Goldberg, its Swiss sandwich business to Bell Food Group and its activities in Brazil to Grupo Bimbo SAB de CV, paving the way for a new start for the company after a few difficult years.
“Aryzta begins its new fiscal year 2022 with growing confidence having completely transformed the business strategy into a multi-local focus,” said Urs Jordi, Interim Managing Director and Chairman. “We have improved operational efficiency and reduced the risks of the financial profile. Organic growth has returned after years of decline and is expected to maintain this positive organic growth trend in fiscal 2022.
“We exceeded expectations in completing our divestiture program in terms of timing and product level. This in turn allowed us to agree to a new five-year credit facility and pay the deferred and current interest accrued on our hybrids. The excessive costs of a global cost structure have been removed and local management is now empowered as part of our multi-local business strategy, which has greatly benefited confidence and morale.
“I would like to personally thank all employees for their continued team efforts in rebuilding the business from the ground up. Maintaining this will ensure that we rebuild trust and credibility with our investors, lenders, customers and suppliers. “
On an Oct. 4 conference call with analysts, Jordi spoke briefly about product innovations in the works for Aryzta.
“There is a general trend towards artisanal and artisanal products, towards starter products,” he said. “So not really white bread or white baguette, it’s more of a handmade product. We start the flour with sourdough with ingredients of vegetable origin. It’s a big trend.
“CO2 the footprint is a big question now. There is a lot of effort for customized products in different regions. There are QSR initiatives towards more exclusive products. So then have a lower end of the price scale and the upper end of the price scale. And it’s different from country to country, from customer to customer.