Irish-Swiss food group Aryzta said that its total revenue in its fiscal first quarter declined by 20.3% to €672.6m.
In a revenue update, Aryzta said it was seeing improvements in its QSR (quick-service restaurants) and retail channel markets, which were offset by Covid-19 related declines in its foodservice markets.
Aryzta, which makes McDonald's burger buns and Cuisine de France bread, said the negative impact of the further restrictions in Europe introduced in November were mostly concentrated on the foodservice channels.
The company said that due to the continuing and changing Covid-19 restrictions and the consequential adverse impacts on its customers and markets, it would not be prudent to provide forward guidance.
Aryzta chairman and interim CEO Urs Jordi said the company's first quarter results were broadly in line despite the significant Covid-19 related disruptions and associated higher costs and suboptimal capacity utilisation rates.
"The next phase of Aryzta's journey back to improved performance, reduced complexity and the empowerment of local teams has commenced," Urs Jordi said.
"Our new business model changes to a simpler country focus model with deeper customer relationships.
"This will lead to organic growth, lower costs and improved margins, and all of this guided by the significantly enhanced bakery, financial and turnaround experience at governance and operational level," he added.
Aryzta has undergone a number of boardroom changes in recent months which saw Gary McGann standing down as chairman. He was replaced by Urs Jordi.
Mr Jordi is also the company's interim CEO too, following Kevin Toland's departure from the group as chief executive.
In a note, Swiss analysts Baader Helvea said that they see "significant upside" in the case of a successful transformation and refocusing of Aryzta's business model.
"Aryzta remains an interesting story for medium-term oriented investors looking for potential high returns and have the ability to take risks," they added.
