Aryzta AG announces its third quarter trading update for the 13 weeks ended 30 April 2011

Food
Food Europe revenue grew by 13.5% in the third quarter to €296.1m with acquisitions contributing 8.2%. Underlying revenue grew by 2.9% in the 13 week period, with 9 month underlying revenue growth of 0.4%. As reported in the previous quarter, continental European markets were the key growth drivers for the segment with UK and Irish markets still moderately in decline.

Food North America revenue grew by 129% in the third quarter to €310.6m with acquisitions contributing 123%. Underlying revenue grew by 8.9% in the 13 week period, with 9 month underlying revenue growth of 4.4%. The positive trend in underlying revenue growth has been most evident in the retail and quick service restaurant segments of the Food North America market. There is evidence that the wider foodservice market in North America is showing signs of recovery.

Food Rest of World revenue grew by 480% in the third quarter to €45.1m with acquisitions contributing 466%. Underlying revenue grew by 6.2% in the 13 week period, with 9 month underlying revenue growth of 13.8%. Continued robust revenue growth was somewhat offset by the effects of Japan’s natural disaster during the quarter, compared with previous quarters. The Food Rest of World market remains a continued focus in the development of pre-established customer relationships within the quick service restaurant segment.

The period has seen continued inflation in food raw material with increasing weather related concerns about the 2011 harvest. The Group has an ongoing programme of dynamic pricing and is working closely with our customers to mitigate the impact of pricing on the consumer through product innovation, product selection and service model efficiencies.

Origin
Origin Enterprises plc (‘Origin’) released its third quarter trading update this morning (07 June 2011). The results continue to show the favourable on-farm momentum and planning environment for primary food producers. Details of this announcement are available at www.originenterprises.com.

Recent repositioning of Origin builds upon its strategic market position in on-farm integrated agronomy. It now has an exclusive focus on a sustainable agricultural model. Financial Position ARYZTA has continued to maintain a strong balance sheet during the period under review.

As of 31 January 2011, the consolidated net debt of the Food segments of the Group, excluding Origin’s non-recourse debt, amounted to €1.06bn. The Food Group net debt: EBITDA ratio was 2.46x (excluding hybrid instrument as debt) with interest cover of 8.15x (excluding hybrid interest). The Food Group gross term debt weighted average maturity was circa 6.7 years. The weighted average interest cost of the Food Group financing facilities was circa 4.14%. ARYZTA intends to maintain an investment grade position in the range of 2x - 3x net debt to EBITDA.

ARYZTA’s 71.4% subsidiary and separately listed company, Origin, has separate funding structures, which are financed without recourse to ARYZTA. Origin’s net debt amounted to €98.7m at 31 January 2011.

Outlook
The third quarter has seen revenue growth underpinned by the contribution from strategic acquisitions. It has also seen the upward trend in underlying revenue growth maintained across the Group’s markets. Persistent raw material inflation requires the continued implementation of dynamic pricing in the fourth quarter and into the early part of the next fiscal year supported by a continuing focus on product innovation and service model efficiencies throughout the business. Current trending suggests the underlying earnings per share guidance given at the half year stage still appears reasonable.


Contact:
Paul Meade Communications Officer ARYZTA AG Tel: +41 (0) 44 583 42 00 info@aryzta.com