Cuisine de France-owner Aryzta braces itself for full-year financial hit from Covid crisis

Cuisine de France-owner Aryzta has confirmed, on the back of a tough third quarter, that Covid-19 will have a material impact on its financial performance this year.

The Irish-Swiss group – which also makes bread for McDonald’s and Subway – said overall revenue fell 24% year-on-year, to €644.2m, in the three months to the end of April. 

It said that it expects a review of its strategic and financial options, by financial advisory giant Rothschild, to be completed by the end of July.

Third quarter organic revenues in the group’s troubled North American division fell by over 20%, while its European operations saw a near 24% decline.

CEO Kevin Toland said the Covid crisis has been “unprecedented” but said Aryzta’s products are positioned to “recover and compete”.

Aryzta is also likely to hold an egm to vote on its board structure in August. A shareholder group requested the meeting to force an overhaul of the board, including the removal of chairman Gary McGann and Mr Toland, although he would remain as CEO.

Aryzta said it currently has cash reserves of around €385m and expects to close its financial year, at the end of July, “with a good overall liquidity position” despite some net cash outflow in the final quarter.

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