Cuisine de France parent Aryzta has said that it is making 'good progress' on simplifying its operations, despite reporting a 21.0% decline in group revenue from continuing operations in the first half of its financial year.
In what it described as an 'improved' performance, Aryzta said that its retail and quick service restaurant business 'recovered strongly' in North America, while recovery also continued in its Rest of World arm, however these improvements were offset by continued restrictions in Europe.
It said that it expects to reduce central overhead costs by 25% this year, which will contribute to a 'substantial lower overall cost base in the future'.
Group revenue for the period (from continuing operations) stood at €752.5 million, compared to €952.2 million for the corresponding period last year, while the business also reported a 36.1% decline in underlying EBITDA, to €76.1 million (down from €119.1 million). If discontinued operations are included, group revenue was down 22.4%.
On Friday, Aryzta confirmed that it was offloading its North American business for $850 million, to an affiliate of Lindsay Goldberg LLC.
'Significant Progress'
“Today’s results highlight the significant progress achieved as a result of our strategy to simplify the business and to de-risk the balance sheet with the sale of our North American business," said Urs Jordi, Aryzta chairman and chief executive.
"The progress to date validates the overwhelming shareholder vote for change in September and December 2020 and the renewed board’s decision to reject the proposal to sell the entire business."
Jordi added that the business is now eager to "focus on delivering the necessary operational improvements and returning to organic growth as we leverage the significant broad bakery experience to improve shareholder returns."
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