Aryzta reported a solid set of results for H1 2014, though somewhat lower than expected mainly due to currency effects. Revenue and EBITA for food Europe and Origin were in line. However, North America and Rest of the World revenue and EBITA were somewhat lower than expected. The statement does not give guidance on the underperformance though it is partly due to currency effects. The company will give further clarity during the analyst conference call later today.
For the Food Group, revenue increased to €1.59bn (+5.7% YoY) largely driven by strong performances in Europe (+19.1% YoY). However, North America and the rest of the world were affected by currency effects and decreased by 3.5% YoY and 9.9% YoY respectively. Revenue at Origin Enterprises decreased by 8.8% YoY (largely due to sale of non-core businesses).
In terms of profitability, Food Group EBITA increased by 10.8% YoY to €203.7m and by 68% YoY at Origin to €4m. Food Group EBITA margins were maintained at 12.3%. However, Group EBITA at $198.3m was at the lower end of expectations. As a result, underlying EPS was also slightly lower than expected.
In terms of guidance, management maintained earlier guidance that fully diluted EPS will grow by double-digits in FY 2014. Given the groups strong financial position (net debt/EBITDA 1.58x), the group is well positioned to continue to augment the organic growth profile of the group with accretive acquisition deal flow.

<p><h5>Muna Muleya</h5>


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is a limited liability company whose registered office is at
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