Swiss-Irish food company Aryzta saw its revenue for its fiscal third quarter fall 2.4% to just under €950m, dragged lower by its North American unit.
Aryzta North America posted its seventh losing quarter in a row with revenue down 7% to €473.5m over the 13 weeks to the end of April.
But revenues in its European operations rose by 3.6% to €420.3m as it continues to benefit from growth in In-Store bakery.
In a trading update, chief executive Owen Killian said that despite the first quarter numbers, the company is seeing an improving trend in all regions.
Mr Killian also said that the company had identified further potential for cost cuts.
Aryzta is under pressure because of poor results which saw its share price hit a four year low in March.
That was compounded by news that Owen Killian had sold a large proportion of his stake in the company which he had pledged as security for a personal loan, the terms of which required him to sell if the value of the collateral fell below a certain level.
Aryzta was formed after merger of Irish bread and pastry company IAWS and Swiss firm Hiestand.
Mr Killian said that the company's half yearly margin weakness remains in line with its expectations and guidance.
"We have identified further potential for improved group-wide efficiencies and cost reduction initiatives. These will enhance our future competitiveness in a market that continues to demonstrate attractive growth," he said.
But he added that these initiatives will lead to incremental one-time cash non-recurring costs in the full year.
Shares in the company closed 6.61% lower in Dublin trade today.
