Aryzta, the global bakery group that grew out of IAWS, the Irish co-op, posted first-half results showing strong growth in America offsetting flatter returns in Europe, writes Brian Carey. The group continues to be at the mercy of volatile wheat prices, but said that it achieved most of “the necessary price recovery” in the six months to the end of January. This financial year will be critical for Aryzta as it sets about a massive €400m integration and transformation initiative that is expected to deliver a 20% growth in earnings in 2013. It involves squeezing more cost savings and revenues from existing operations and Fresh Start Bakeries and Great Kitchens, its recent $1.1 billion (€830m) acquisitions. NCB analyst Darren Greenfield is cautious, saying such large transformation initiatives are notoriously difficult. He is building some slippage of forecast earnings targets into his calculations. McDonald’s accounts for an estimated 10% of Aryzta sales. With its strong steady sales, and emerging markets exposure, it is not a bad customer to count on your list. The stock is not cheap. The markets are clearly confident of chief executive Owen Killian delivering on the transformation and integration initiative.