Aryzta, owner of Cuisine de France, has posted a 1.9% increase in underlying profit (EBITDA) growth for it 2019 financial year, with total revenue declining 1.5% across the group.

Commenting on the results, CEO Kevin Toland said the steps taken in 2019 have established the foundations on the path towards stability and growth.

Whether they have or not is difficult to see. Investors are still not confident, with shares down 10% since last Friday’s close and trading at around 0.64c on Wednesday.

The falls come as the Swiss-based group announced on Friday that it was finally cutting loose with its controversial investment in French frozen food company, Picard.

Kevin Toland, CEO Aryzta.

In 2017, it purchased a 49% stake in Picard for €447m. At the time, analysts questioned the move and fit. It will now sell the majority of its Picard stake for €156m. It will retain 4.5% in Picard and sell at a later stage. When €91m in dividend incomes are considered, Aryzta has received €247m for its stake.

Toland, who inherited the Picard business when he came in to turn the embattled baker around, said the deal represents “the earliest practicable opportunity to realise the maximum deliverable value for Aryzta”.

The transaction is expected to close before the end of the year.

The North American business appears to be still challenged. Organic revenue growth in the last quarter was down 8%, with volumes down 12.5%.

Despite the reduced volumes, margins did increase but were mainly driven by savings coming from its cost cutting programme

The drivers of the weak performance included large retail, which was down 13.3%, and quick service restaurants, which were down 10.6%.

Despite the reduced volumes, margins did increase but were mainly driven by savings coming from its cost cutting programme (Project Renew).

Toland said the group was realistic about and resolved to address the clear revenue challenges presented by its North American business.

A year ago, Aryzta received a €740m lifeline from shareholders to shore up its finances

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.

A year ago, Aryzta received a €740m lifeline from shareholders to shore up its finances.

It was promised a major turnaround plan. Aryzta’s annual report shows the former head of Glanbia’s US global nutritionals unit received a total remuneration of €4.1m for the financial year to the end of July.