Owner of Cuisine de France brand maintains medium-term earnings outlook.

Food and agricultural supplies group Aryzta saw group revenue jump 13.8 per cent to €1.26 billion in first quarter of its financial year.

In a trading update, the company, best known here for its Cuisine de France brand, said revenue from its food operations increased by 17.8 per cent to €937.8 million.

Its food operations in North America, which supply McDonaldsSubway and Tim Hortons, saw revenue increase by 30.5 per cent to €475.5 million in the three months to the end of October.

However, underlying revenue growth declined by 3.2 per cent despite “a very strong” contribution from its acquisitions of 31.2 per cent.

About 40 per cent of the decline in underlying revenues related to changes in the North American fundraising distribution model and the transfer of certain volumes previously produced in North America to local production units, the company said.

Revenue from food operations in Europe grew by 7 per cent in the first quarter to €404 million, with underlying revenue growth up 3.1 per cent and a contribution of 2.7 per cent from acquisitions.

European revenue growth also benefited from the transfer of production volumes previously produced in North America, it said.

“The trends in Europe remain positive, reflecting improving stability in Aryzta food solutions and strong growth within large retail.”

Chief executive Owen Killian said : “”We anticipate an increased momentum in underlying revenue through H2. Our focus is to deliver value for our customers, while unlocking the benefits of our newly created business platform.”

The company maintained its previous medium-term guidance of 7-12 per cent growth in earnings per share.