Swiss-Irish baked goods group Aryzta has reported a 5.5% drop in revenue to €909.7m for the three months to the end of October driven by continuing problems in the US.
The company, which is listed in both Dublin and Zurich, saw a 7% fall in North American revenue.
It said this was entirely due to problems at US subsidiary Cloverhill.
The Illinois based bakery is a major supplier to a number of popular brands, but it has been losing business after a decision to begin shipping its own products to retailers in direct competition with its customers.
In today's trading update, Aryzta said progress is proving difficult at Cloverhill, which was also found to have been using hundreds of undocumented immigrant workers at its factories in a federal audit last year.
The company's chief executive Kevin Toland said that the company's business challenges are unchanged from those outlined in September.
"Europe continues to perform to expectation, including Germany, with broadly based growth across the region offsetting planned Swiss in-sourcing," he noted.
"Progress at Cloverhill in North America is proving difficult. Management's priority is to continue to identify issues and opportunities to address operating performance and to maximise available free cash flow," he added.
Aryzta said that given the range of internal and external challenges, its best estimate is that full year EBITDA in its 2018 fiscal year is expected to be broadly in line with that of the 2017 fiscal year.
Shares in the company closed 4.24% higher in Dublin trade today.
