Bakkavör, a leading fresh food, pizzas and desserts producer, has seen full-year like-for-like revenues up 4% to £1.72bn for 2014.

The company said this figure meant it had outperformed the fresh food market as a whole, which grew 1.5% in the 52 weeks ending 4 January 2015.

The firm said it had increased capital investment to support growth and, in the year ending 27 December 2014, it had completed a number of capital projects which included significant investment in its salads, pizza and bread businesses.

It said that by investing in its pizza business, it had consolidated a market position of number one, through increasing its stone-baking and wood-fired capacity.

It also said it recently completed an investment in additional baking capacity at the chilled breads facility in response to increased customer demand.

In the statement, Bakkavör said: “This investment enhances both the quality of our offering in the growing artisan bread market as well as increasing capacity and efficiencies.”

Commenting on the results, Agust Gudmundsson, chief executive officer, said: “In a tough trading environment with low market growth, the group has made good progress, increasing revenues, market share, margins and cash generation. Against a backdrop of challenging market conditions, we have continued our strategy of leadership in innovation, and close partnering with our customers.”

The company continued to say that despite the issue of price deflation, the firm had experienced a year-on-year inflation across its total cost base, including utilities and labour.