Aryzta has reported a 2% organic decline in revenue from its European operation as the business refocuses on frozen bakery.
Describing its European business as “performing well”, the company announced that European EBITDA for the first half of its 2020 financial year rose 2.8% to €100.7m.
“Europe has delivered EBITDA and margin growth consistent with its focus on profitable volume and increased operating efficiency,” said Aryzta CEO Kevin Toland.
Total group revenue fell 2.5% to €1.65bn, with EBITDA up 12% to €169.8m.
Aryzta has transformed its business in the past year, demerging Delice de France through a management buyout, selling Signature Flatbreads and agreeing the sale of a 43% stake in French frozen food business Picard.
The company said this had helped it to reduce debt further.
In contrast with the European operations, EBITDA at Arzyta’s North American business fell 22.8% to €46.5m, while revenue fell 5.3%.
“Factors impacting North American profitability are being addressed and we expect an improved performance in H2,” added Toland.
Revenue at Aryzta’s Rest of World division rose 8.6%, while EBITDA fell 3.5%
“Aryzta continues to make strategic and financial progress with our portfolio refocus to a frozen B2B business now complete. Our net debt is at its lowest level since 2013, and we continue to expect to deliver underlying EBITDA growth for FY20.”