Declining revenues in the convenience retail and foodservice markets has hit speciality bakery business Aryzta’s profits.
The Swiss-based firm reported a 8.2% drop in underlying revenue, to €1,072bn for its Food Europe business, with operating profit down 2.9% to €131,245m for the full year to 31 July 2010.
Underlying growth in its Food North America arm was down, 4.3% to €571.6m, but operating profit increased by 3.6% to €69,911m.
The Food Rest of World business saw growth in underlying revenue of 8.4% to €35.8m, with operating profit up 180.9% to €5,693m.
Aryzta CEO Owen Killian said the economic conditions for consumers remained very challenging.
“Aryzta has responded by continuing to focus on operating efficiencies, cost management, innovation and cash flow generation, while working alongside its retail and foodservice partners to provide fresh and convenient, high-quality baked goods at competitive prices,” he explained.
The firm said that, in terms of falling revenue, the convenience retail and foodservice markets in Ireland and the UK were the most severely affected channels and markets within Europe.
“The consumer has endured stringent austerity measures, significantly impacting their disposable income,” said Aryzta. “Support was provided to customers, which reduced costs, particularly on the island of Ireland, facilitating operators to increase their value offerings.”
It added that revenues across Continental Europe remained stable, with continued investment in new field personnel, and that growth from new customers, particularly in the independent sector, had helped performance.