Aryzta, the owners of Cuisine de France, reported underlying profit (EBITDA) growth for its 2019 full year of 1.9%.

Total revenues declined 1.5% to €3.4bn and profits (EBITDA) rose to €308m. Margins expanded 30 basis points to 9.1%.

While organic revenues were flat, sales in Europe were up 1.9%, while sales in North America dropped by 3.8%. Underlying net profit of €74m increased by 50%.

Last week, the group announced it was to sell the majority of its stake in French food business Picard for €156m.

The steps we have taken have established foundations on our path towards stability, performance and growth

In 2015, amid much criticism, Aryzta bought a 49% stake in the frozen food manufacturer for €447m.

It will now retain 4.5% in Picard to be sold at a later stage. Picard has provided dividends of €91m to Aryzta.

Commenting on results, Aryzta CEO Kevin Toland said: “The steps we have taken have established foundations on our path towards stability, performance and growth. This is reflected in the delivery of group level underlying EDITDA stability.”

Realistic

Toland added that the group is realistic and resolved to address the clear revenue challenges presented by Aryzta's North American business.

He warned that the group will see a further period of negative organic growth in the first half of the financial year in the North American market. However, he expects that to be more positive in the second half next year as new contract volumes are realised.

Toland also expects further profit growth next year, as cost savings from its cost-cutting programme are realised.

Shares in Swiss-headquartered Aryzta are down 70% in the last year and closed on Monday at €0.67.