When the effect of currency is stripped out (+5%) underlying revenue increased 0.2%, with acquisitions, net of disposals, providing 0.3%. Overall earnings (EBITA) increased 2.7% to €230.8m., with Europe driving the growth where earnings were up 6.8% to €105.4m. Across the business margins came under pressure and EBITA margin decreased by 30 basis points to 11.8%. All regions saw a fall in margins.

Commenting on the results, ARYZTA chief executive Owen Killian said: "Revenue development has been erratic for the past 12 months and will be for a further 18 months as we commission and optimise our capacity. We are focused on establishing a sequential growth pattern and view short-term earnings guidance as less relevant, until we deliver on this priority."

Its European food business, which accounts for 45% of revenues, saw the greatest growth where revenues increased 9.5% to €881.7m, with underlying growth of 4.7%. Acquisitions, net of disposals, contributed 2.7% and there was also a favourable currency impact of 2.1%.

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Earnings (EBITA) increased 6.8% to €105.4m, however margins fell 30 basis points (bps) to 12%.

The American business saw its revenues increase 3.6% to €971m. Outside of these two key regions, revenues fell 7.2% to €107.3m. Earnings in North America was flat (0.1%) at €113.1m, while outside of these two regions earnings fell 6.8% to €12.3m.

Underlying fully diluted earnings per share increased 2.5% to 158.4 cent, however underlying fully diluted EPS decreased 1.9%, due to the disposal of Origin Enterprises.

Last Augist, Aryzta acquired a 49.5% interest in Picard, a premium specialised French frozen food business.

The Group wrote down assets by €7.4m during the period as a direct result of its recent integration and rationalisation programme. It also incurred a charge of €7.7m in severance and other staff-related costs during the period.

Net debt stood at €1.8bn at end of January 2016, with Net Debt to EBITDA of 2.91 times.

Disposal of Origin

Last March, Aryzta reduced its investment in Origin from 68.1% to 29% and received net proceeds of €398m. In September 2015, the group completed the divestment of its remaining 29% interest, which raised additional net proceeds of €225m. However, it realised a loss of €45m on the disposal as the remaining share held for sale was valued at €270m.

Shares are down almost 3% in early trading on announcment of the results and last traded at €42.79. Shares are down 42% in the past year.