ARYZTA

Further COVID-19 update: managing cash, costs and covenants

  • Sectors : Foods
  • Companies : ARYZTA

Ratings and price correct at time of issue.

  • ARYZTA

    Closing Price: 37.4c

  • RATING 03/06/15

  • PREVIOUS RATING 14/06/10

    OUTPERFORM

DAVY VIEW

The key takeaways from ARYZTA’s May 4th update include the increase in liquidity since late March and the agreement with lenders to increase headroom under the banking covenants out to January 2021. Network and capacity adjustments, coupled with the furloughing of staff, will help ameliorate monthly cash burn. Given the scale of the QSR and Foodservice channels (56% of sales), the key issue for the equity remains the duration of the lockdown and management of negative operating leverage.

Download full report with analyst certification and important disclosures

May 5 2020, 07:10 IST/BST

Download