Icelandic giant Bakkavör said that the ’toughest trading conditions in decades’ had affected the group’s performance, as it revealed its results for the first months of the year last week.

Chief executive Agust Gudmundsson said that fundamental changes in world supply had resulted in global commodity price increases, which were having a ’significant impact’ on the business. He said the firm’s results were also affected by extreme weather conditions in the UK, a major product recall in the first quarter and capacity transfer within part of its ready-meals operations.

The Bakkavör Group has 55 factories and employs around 20,000 people in eight countries. It owns bakery businesses including New Primebake, Laurens Patisseries and Pure Patisserie in the UK.

The company revealed operating profits of £86.9 million, a 4% rise, over the nine months, but they were down £30.1m, a 6% fall, in the third quarter. Cash generated from the firm’s operations stood at £110.2 m, down 11%.

Gudmundsson said that despite of the difficult trading conditions, the Bakkavör group’s sales outperformed market growth and it continued to strengthen its market position, with five acquisitions over the nine months in the UK, the Czech Republic, France and China.