Struggling Aryzta is advised to cut down bakeries

Davy report says company ‘retains significant potential’, but ‘must deliver on debt reduction’ to stabilise operating margin

24th September, 2017

Aryzta, the under-pressure Irish food company best known for its Cuisine de France brand, should consider reducing the number of bakeries it operates, according to stockbrokers Davy.

Aryzta, which announces its annual results tomorrow morning, has 57 bakeries in 29 countries. Its increased production capacity has coincided with sluggish sales and earnings.

Over the five years from 2011 to 2016 the value of Aryzta’s plants has increased by 89 per cent, but the company has only seen...

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