Bakkavör has outperformed the food market, boasting a 4% growth in like-for-like revenues for the 39 weeks ended 27 September 2014.

Kantar Worldpanel data shows the wider market growing at just 2% in the 12 weeks to 13 October.

The company said it was continuing to invest in additional baking capacity at its chilled bread facility in response to customer demand. It hopes this will enhance the quality of products, as well as extend its offering in the artisan bread market.

It said its UK business generated revenue of £381.6m in the quarter, an increase of 3.4% on a like-for-like basis from the prior year.

Commenting on the results, Agust Gudmundsson, chief executive, said: “We continued the group’s positive performance through this latest quarter as we further extended our market share, while also improving margins. There are unprecedented changes affecting the UK grocery market, with the discounters continuing to gain ground. Nonetheless, we remain committed to supporting our customers by significant investment in new technologies and product innovation.”