Aryzta 'in line with expectations'

Aryzta AG said its guidance regarding underlying earnings-per-share still appears "reasonable" after the company posted sales of €729.1 million for the first quarter of 2010.

In a trading update for the 13 weeks to the end of October, the firm, which owns the Cuisine de France brand, said food revenue fell 8.4 per cent for the quarter, following trends in 2009.

In Europe, food revenue fell by 11.4 per cent during the period due to tough trading conditions in the UK and Ireland, where the revenue decline widened to 25 per cent.

Weak spending in its other European markets - Switzerland, Germany, France and Poland - impacted revenue, but the firm said it had expanded its channel penetration.

In North America, food revenue fell 2.1 per cent, compared to a growth of 19.5 per cent in the same quarter a year earlier.

Aryzta chief executive Owen Killian said the business was performing in line with expectations in the first quarter of 2010.

"Aryzta will remain focused on cash generation and improved operating efficiency. As a result the business is in an excellent position to benefit from improved trading conditions and acquisitions when they arise," he said.

"In the meantime the guidance given regarding underlying EPS at the time of the FY 2009 full year results still appears reasonable."

Aryzta was formed in 2008 following a merger between IAWS and Swiss bakery group Hiestand.