ARYZTA's merchandise in the oven, was positively surprised in the first quarter of 2018, following a strong uncertainty following two non-profit warnings last year.
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Zurich (AWP) – ARKZTA's merchandise in the oven, was positively surprised in the first quarter of 2018/19, with two profit warnings last year causing great uncertainty. In sales of organic growth, the company accidentally registered a small amount. He responded positively to the market.
In general, sales from October to October of 2018 fell by 5.22% to 862 million euros, mainly sales of activities and negative currencies. Organically, that is, by itself, ARYZTA has increased sales by 0.3% On the contrary, analysts expected more decline.
The development of the previous quarter continues
Thus, the bakery goods manufacturer entered the fourth quarter of the last quarter. At that time, ARYZTA repeatedly showed positive development for the first time after the growth of organic growth.
Responsible for positive ecological growth was made based on Monday's prediction, especially European companies. Sales fell by 1.1% to 430 million euros, with growth of 2.0%.
In North America, sales dropped by 10.4% to 367 million; Organically, it fell by 2.8%. "The rest of the world" is a matter of less than 10% of the business; sales fell 0.1%, or 7.7%, organically.
"As we expected the sales developed in the first quarter," said Kevin Toland, head of the company in the conference call. Overall, the environment remains a challenge, but the latest capital increase allowed by shareholders is able to return to growth, the company's chief continues.
Toland sees the biggest challenges in North America, where, in addition to falling prices, the company also increases labor costs. The latter has made investments in automation. In the third quarter, about two thirds of the total planned investment of 150 million euros will be spent on automation of work processes.
As a result, and thanks to the reduction of costs, ARYZTA intends to achieve savings of 90 million years in 2020 by 2020/21.
In all, the CEO has more confidence in the future. The business expects to maintain stability in 2019 and wants the fruits introduced by the Renew energy efficiency program. Toland has confirmed forecasts for the current year and the EBITDA will continue with a single high level of organic growth.
ARYZTA shares have reacted to a great price increase. According to closed trading, the values increased by 11.2% to 1.35% and the general market (SPI) increased by 0.89%. Although analysts have been positive for billing on their projections, they still win the winning numbers so they can take on less compromises with the company.
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