BAKERY GROUP Aryzta saw underlying revenues fall by 1.7 per cent in the three months to the end of October 2010.

It was a slower decline than in previous months, indicating that the tough trading conditions which hit the company’s revenues last year may be improving.

Aryzta’s sales last year were hit by falling consumer demand, particularly in Ireland and the UK, with full-year results to the end of July showing an 8.6 per cent decline in group revenues to €3.01 billion.

Yesterday’s trading update for the first quarter of 2011 indicated that revenues are on the increase, with overall revenues up by 55 per cent, predominantly as a result of acquisitions.

Underlying revenue at Aryzta’s European division declined by 2.4 per cent year on year.

This compared with a 11.4 per cent fall during the same period last year.

Its North American food business saw a 1.4 per cent decline on the year, compared to a 2.1 per cent fall in the first quarter of its 2010 fiscal year.

Its emerging markets business enjoyed revenue growth of 18.5 per cent on the year, compared with a 3.5 per cent year on year increase in the first quarter of 2010.

In terms of outlook, the company reiterated its target of earnings per share growth of 45 cent for the year.

It said yesterday that contributions from acquisitions should continue to underpin revenue growth, while the company will focus on unlocking the full potential of its enlarged US bakery business.

Aryzta, which has its primary listing in Zurich and secondary listing in Dublin, was formed in 2008 from a merger between Swiss baker Hiestand and the Irish firm IAWS.

Aryzta climbed 6.6 per cent on the Iseq yesterday, finishing up €2.00 at €32.29.