ARYZTA - Volume challenges in North America persist

Davy Research
/Read Important Disclosures

Better-than-expected margin and cash delivery in FY 2019 (driven by self-help initiatives) was overshadowed by a steep decline in North America volumes for Q4. As such, concerns over the North American operating model remain and continue to encumber the equity. We anticipate a c.6-7% cut to our FY 2020 EBITDA forecast as negative operating leverage dilutes the impact of Project Renew.