Aryzta, the Irish-Swiss bakery group, has reported a 6.1% rise in revenue to €995m (£701m) for the three months to 31 October.
The Q1 growth was fuelled by acquisition growth of 0.7 per cent and currency movements of 5.8% which compensated for a drop in underlying growth of -0.4%.
Underlying growth in Europe was strong at 5.5% but was negative in North America, with Aryzta not expecting it to become positive until H2. Meanwhile, revenue fell by 10% to €500.1m in the company’s Rest of the World Division.
Aryzta chief executive officer Owen Killian, chief executive officer at Arytza, told the Irish Times underlying revenue development was “satisfactory” during the period.
He said: “Consumer sentiment is positive in North America where we are encouraged by the initial consumer feedback to our renewed focus on our brands, particularly La Brea Bakery and Otis Spunkmeyer. Consumer sentiment is more muted in Europe although our business in Ireland and the UK returned to growth in the period.”
The report follows the news that Aryzta’s chief executive of Aryzta Europe and Asia Pacific is to leave the company in January despite being recently appointed to the senior executive team and being awarded €5.5m in stock options. The Irish Times reported that he is leaving to pursue other interests and he will not be replaced, with senior staff now reporting directly to Killian.