Swiss-Irish Aryzta's results for the six months to the end of January show strong growth in revenues for the baked goods group.
Aryzta, formed from a merger of Irish company IAWS and Swiss firm Hiestand, posted a half year pre-tax profit of €176m on revenues of €2.4 billion, up 13.6% on the same time last year.
Aryzta said it is hoping to benefit from improved consumer spending as a result of the European Central Bank's €1.1 trillion monetary stimulus programme.
The results missed expectations. Weak underlying revenue growth, along with favourable currency translations, suggested underlying fully diluted earnings per share at the lower end of its 7-12% guidance, the company said.
Shares fell 11.6% in Dublin trading to finish at €64.53.
"Our immediate focus is to generate sustainable underlying revenue growth, while optimising our production for higher returns and increased free cash flow," said Aryzta's chief executive Owen Killian.
The company said the market for its baked goods had been polarised, with spending concentrated on either the luxury or value ends of the market. The middle market remained "under pressure", it added.
Revenues in its food division rose by 17.2% to €1.86 billion, with European revenues up 5.4% to €805m. Revenues at its North American operations grew by 31% to €937m while the revenues in the rest of the world rose by 8.5% to €115.6m.
