Shares in embattled bakery group Aryzta have soared by 20% in the last week after the group announced financial results for its 2018 financial year and reaffirmed its commitment to raise €800m in fresh capital via a share issue.

Aryzta shares jumped to their highest point since August, despite the group posting pre-tax losses of €493m for its 2018 financial year.

Aryzta CEO Kevin Toland moved to draw a line in the sand around the recent woes of the bakery group and insisted the turnaround was in progress.

Strategy

“Aryzta’s strategy was unfocused and the business over-expanded outside of its core sector and also by over-investing in capacity. We ended up with an over-leveraged company, which would be better described as a disparate group of businesses rather than a coherent whole,” said Toland.

Of the other listed agribusiness plcs, shares in Greencore made gains of 5% this week to reach just under £2, while Glanbia shares rose 3% in the week to hit €15.17. Shares in FBD Holdings rallied 4% in the week to €10.40 after the insurer announced on Monday it will buy back and cancel the €70m convertible bond from Canadian finance group Fairfax.

Decline

In contrast, shares in Donegal Investment Group, Origin Enterprises and Tesco all posted declines this week. Donegal shares are down more than 5% in the week below €9.00, while Origin shares fell over 3% in the week to €5.64.

Shares in UK supermarket giant Tesco plunged almost 12% this week to their weakest point since last April. On oil markets, the price of Brent crude oil continues to rally among fears of a supply shortage. The price of Brent crude oil is up a further 5% this week and is currently trading at $85/barrel.