OREANDA-NEWS. ARYZTA AG announces its third quarter trading update for the period ended 30 April 2016:

Highlights
– Continued progress in underlying revenue recovery, +0.9% in Q3
– Improved revenue visibility with all outstanding long-term contract renewals signed
– Underlying revenue growth in North America was (2.3)% in Q3. Excluding revenue  with customers impacted by contract renewals, underlying growth was +4.7%
– H2 margin weakness trending in-line with guidance
– Group-wide efficiencies and cost reduction initiatives identified
– Incremental one-time cash non-recurring costs in FY 2016
– Earnings and cash generation guidance reiterated

Commenting on the Q3 Trading Update, ARYZTA AG Chief Executive Officer Owen Killian said:
“Q3 revenue development confirms an improving trend in all regions. All outstanding long-term contract renewals are now signed, adding greater visibility to our revenue and validating ARYZTA’s investment in the long-term customer partnership model.

H2 margin weakness remains in-line with expectations and guidance. We have identified further potential for improved group-wide efficiencies and cost reduction initiatives. These will enhance our future competitiveness in a market that continues to demonstrate attractive growth. However, these initiatives will lead to incremental onetime cash non-recurring costs in FY 2016.

We expect to report underlying fully diluted EPS broadly in-line with consensus and to generate free cash in excess of €200m in FY 2016.”