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.
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.
