Aryzta, the company which was formed last year from the merger between IAWS and Swiss bakery group Hiestand, said its sales fell by 16% to just under €730m in the first three months of its financial year, to the end of October.
Earnings in its food division rose by 2.2% to €51.1m, while earnings at Origin Enterprises - in which it holds a 70% stake - slumped by 40% to €12.7m.
Aryzta said that food revenues declined by 8.4% in the first fiscal quarter of 2010. The firm said the pattern of decline was consistent with trends seen throughout 2009.
Revenues in its food Europe division declined by 11.4% in the three month period, due mainly to the 'extremely tough' trading conditions in Ireland and the UK. Elsewhere in Europe - Switzerland, Germany, France and Poland - the business has displayed 'excellent defensive characteristics'.
Revenues at its Food North America fell by 2.1% as the US consumer continues to 'conserve their dollar'.
Reflecting the increased seasonality of the business from recent deals, about 80% of Origin Enterprise's annual operating profits will be earned in the second half of the year.
The company said the fall in revenues is mainly due to the impact of lower commodity prices and delayed decisions from its primary producers. Masstock - its integrated agronomy service business in the UK and Poland, continues to perform well, it added.
Aryzta CEO Owen Killian said that the business performed in line with expectations and the guidance provided in September.
'The business is in an excellent position to benefit from improved trading conditions and acquisitions when they arise,' he said.
