Latest news with #Aryzta
Irish Times
07-05-2025
- Business
- Irish Times
Aryzta targets up to €60m in cost cuts to boost margins over three years
Aryzta, the Swiss-Irish maker of par-baked pastries and breads, said it plans to find as much as €60 million of gross savings over the next three years in order to boost its earnings margins as its revenues at a faster rate than the wider baked goods market. The company behind the Cuisine de France brand in Ireland will likely have to spend €20 million-€30 million on further upgrading its IT infrastructure in order to deliver some €40 million-€60 million of gross cost cuts, it said on Wednesday as it announced new medium targets. This would result in net savings of €20 million-€20 million. It aims to improve its earnings before interest, tax, depreciation and amortisation (Ebitda) margin to more than 15 per cent over the three years, compared to 14.6 per cent last year. Aryzta said that it aims to further reduce its debt over the period, including the redemption of its final €155 million of hybrid debt-equity instruments, in order to return to paying dividends for the first time since 2017. It aims to reduce its net debt to 1.5-2 times Ebita from a ratio of 2.8 last year, but also look at bolt-on merger and acquisition opportunities in core markets – which span Europe to southeast Asia, Australia and New Zealand READ MORE 'Aryzta's mid-term targets reflect our strategy to focus on innovation-led organic growth and premiumisation, continuous business process improvements and a comprehensive cost discipline program,' said Aryzta's new chief executive, Michael Schai, who took on the role in January. 'Our strategy is targeting to generate sufficient cash to further reduce debt levels, invest in innovation and return capital to shareholders. We envisage further improvements across all our financial metrics over our new plan. It also reflect our aim to be well positioned in our key markets and have sufficient financial strength to control our own destiny given the consolidation taking place in the bake-off sector.' The company, which was formed in 2008 through the merger of Dublin-based IAWS and Swiss baking group Hiestand, saw its centre of gravity move from Dublin to Zurich in late 2020 under a boardroom coup in 2020, following years of weak performance following a series of debt-fuelled deals. The company has been through major restructuring since then, including the sale of a troubled North American business and its Brazilian unit, debt reduction and a refocusing on product innovation.
Irish Times
01-05-2025
- Business
- Irish Times
IPL Plastics now a far cry from its One51 days
The news that IPL Plastics plans to merge with Dutch firm Schoeller Allibert is one of the more notable deals for an Irish company in 2025, and comes almost a 15 years after one of the biggest Irish corporate spats of the crash when the then chief executive of what was at the time called One51 faced down an attempted rebellion. The deal, which will create a company with an estimated value of $1.7 billion, will mean IPL chief executive Alan Walsh leads the enlarged company, and comes after private equity firm Madison Dearborn hired bankers to run a sales process. The US firm had taken over IPL Plastics in 2020. Spun out of the old IAWS , IPL's predecessor company, One51, had a short but controversial life. It was, in essence, the rump of IAWS after that company merged with Switzerland's Hiestand to create Aryzta in 2007. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 Philip Lynch, a hugely influential figure in Irish business at that time, led One51 which was an investment company with stakes in Irish Pride Bakeries, Irish Continental Group and NTR among others, with Protech Plastics following a year later. READ MORE At that stage, its share register included a veritable who's who of Irish business. But, as the financial crisis took hold, things turned sour. In 2010, Gerry Killen led the 'Campaign for Change at One51', calling for an overhaul of the firm's operations and the addition of new board members. At a raucous shareholder meeting in July that year, things came to a head. [ Gloves are off in One51 corporate spat Opens in new window ] In the end, none of the campaign's nominees to the board were elected, yet a year later, Lynch was removed as chief executive amid a plunging share price and controversy over his €1.4 million pay packet. Mr Walsh, then chief financial officer, was named to the top job and has remained in place since. [ Philip Lynch dismissed by investment group One51 Opens in new window ] It is notable that IPL Plastics – it took the new name in 2018 to reflect its pivot fully to that industry – has recovered from that nadir and grown to the scale it has in the years since. However, Aryzta – something of the star performer – hit stormy waters itself. At the time Lynch was removed, Aryzta appeared to be going from strength to strength. In the years since, it has cycled through chief executives and seen its market capitalisation plunge by more than two-thirds, even with a strong recovery in recent months. In business, nothing ever stays the same.
Irish Times
22-04-2025
- Business
- Irish Times
Aryzta shares dip from multiyear highs on Asian sales weakness
Shares in Aryzta pulled back from a 6½year high on Tuesday as the Swiss-Irish baked goods group reported a dip in sales across Asia and Australia, prompting some analysts to tweak their forecasts. The owner of the Cuisine de France brand in the Republic reported organic sales growth of 1.6 per cent in the first three months of the year. It saw 2 per cent growth across its main European markets partly offset by a 1.6 per cent decline across its so-called rest of world division, which comprises operations in southeast Asia, Australia and New Zealand – driven by less promotional activity by customers in the fast-food sector. The rest of world division accounts for only 10 per cent of group sales. READ MORE Baader Helvea analyst Andreas von Arx said he was reducing his earnings forecasts for Aryzta between this year and 2027 by 2-3 per cent per annum. He said the next few quarters would show whether the rest of world decline was down to one-time issues. Shares in Aryzta fell 3.2 per cent to 1.91 Swiss francs (€2.04) in Zurich, having closed last Thursday at SFr2, their highest level in 6½ years. 'Aryzta had a solid start to the year in line with our target to achieve low to mid-single digit organic growth this year,' said Aryzta's new chief executive, Michael Schai, who took on the role in January. 'This was achieved against a weak consumer sentiment and deteriorating macroeconomic environment. In addition, rest of world weakness from promotional activities' timing offset a strong performance in Europe.' Mr Schai said that while quarterly organic growth can vary, Aryzta is 'well positioned to grow over the medium and long term' as the market for the type of par-baked products the company produces continues to grow.
