FOOD COMPANY Aryzta, the maker of Cuisine de France and Delice de France lines of speciality breads, delivered a strong underlying sales performance in the third quarter, although the company noted continuing pressure from rising input costs and fragile consumer demand.

The Zurich-based company, which was formed following the merger of Iaws and Swiss bakery firm Heistand in 2008, saw revenues increase by 24.2 per cent to €1.02 billion in the third quarter, mainly as a result of the acquisition of US companies Fresh Start Bakeries and Great Kitchens.

While the company’s US business now accounts for about half of overall revenues, Europe remains a key driver of growth.

Underlying revenues at Food Europe were up 2.9 per cent for the 13-week period, compared to underlying revenue growth of 0.4 per cent for the overall nine-month period.

The accelerated pace of growth in Europe was due to strong performances in the French and German markets in particular, with Ireland and Britain still in decline.

Chief executive Owen Killian said tough trading environments persisted in Britain and Ireland, although the rate of decline had slowed considerably, with the company now experiencing single-digit rather than double-digit decline.

The issue of input price inflation also remains a concern for the company.

Having flagged a figure of up to 10 per cent in terms of price increases in March, Mr Killian said it would continue throughout the fourth quarter and possibly after the first quarter of 2012.

However, the company said the impact on consumers should be minimal due to the programme of dynamic pricing in place as well as continuing work with customers in the area of product innovation, product selection and efficiencies.

Underlying sales at Aryzta’s north American food division rose 8.9 per cent in the third quarter, compared to 4.4 per cent over the nine-month period, although its sales in the rest of the world were adversely affected by the Japanese earthquake.

Mr Killian noted Aryzta had sustained the trend of improvement which had begun in the first quarter, and which had followed eight consecutive months of decline in Europe and four in North America.

The company was “very encouraged by this momentum”, Mr Killian added .

Aryzta maintained its full year guidance for 2011.

Aryzta’s 71 per cent subsidiary, Origin Enterprises, also posted strong third-quarter results yesterday.