Worldwide bakery supplier CSM revealed falling demand in its bakery supplies for the first quarter of the year, with a 1.2% drop in volume compared to Q1 2009.

In an interim management statement, CSM reported overall sales of E644.4m (£555.5m) for the first quarter compared with E636.1m (£548.4m) in 2009, while EBITA increased from E6.3m (£5.4m) in 2009 to E16.4m (£14.1m), mainly due to improved margins as a result of more favourable raw material contracts.

Volumes in CSM’s European operation saw sales down from E249.2m (£218.9m) in Q1 2009 to E247.3m (£213.2m) in Q1 2010, with growth in its frozen products, particularly in the UK where the firm said there had been some recovery from the "severe economic setback in 2009".