Aryzta sinks on further revenue fall

Shares in Cuisine de France owner Aryzta fell by over 4% on the back of the Swiss-Irish baked goods group posting a further revenue decline.

Aryzta said it generated total group revenues of just under €844m for the first quarter of its financial year, which covers the three months to the end of October. A 2.1% fall on the same quarter last year.

Although well flagged, a 6.1% fall in organic revenue in North America — Aryzta’s problem market for some time — was a key driver of overall decline. In the rest of the world, Aryzta said organic revenue was up 7.5% in the quarter, and it expects to see improvements.

Aryzta’s shares, which have been battered over the past 12 months, were down by over 6% at one point before paring some losses.

Chief executive Kevin Toland said second-quarter revenue in North America will remain negative, but the second half should see more positivity as new contract volumes are realised. He also said further underlying earnings growth, at a group level, are expected.