Aryzta revealed its UK and Irish business has been hit the hardest by the recession, as the Switzerland-based firm announced revenue losses in its Food Europe division.
In a statement announcing its full year results for the year ended 31 July 2009, the firm, which focuses primarily on speciality bakery, revealed a drop in revenue of 2.2% to €1,137.2m (£1,047.74m) in its Food Europe division. Operating profit stood at €135,103 (£124,561.29), up 11.4%.
The firm said its Irish and UK business had been most affected by the recession, and a result substantially reduced its cost base. Its, now fully commissioned, Grangecastle bakery helped enhance efficiencies.
Its Food North America division saw revenue increase 12.5% to €555.1m (£512.01m), and operating profit increase 30.1% to €67,481 (£62,267.69).
Aryzta chief executive officer Owen Killian said the economic downturn is reflected in the firm’s underlying revenues, which swung from double-digit growth to a decline, within the twelve month period.
In the financial statement released by the firm, it said that in the recessionary period encompassing the latest financial figures, credit from banks became very restricted and consumer spending slowed. However it stated that it remained focused on cash generation and improving operating efficiency.
Aryzta formed in August last year through the merger of Irish company IAWS and Swiss Bakery firm Hiestand.
It is a mix of business to business and consumer brands, including Heistand, Cuisine de France and Delice de France. Its Food Europe division comprises its speciality bakery businesses which span across Switzerland, Germany, Poland, the UK and France.