• Net profit jumps to GBP1.8m (US$2.9m)
  • Sales dip 7%
  • Sugar unit sees "toughest year" yet

European food manufacturer and distributor The Real Good Food Company said profit increased during 2010 despite recording a decrease in sales.

The sugar, dairy and bakery manufacturer and distributor said today (29 March) that net profit soared to GBP1.8m (US$2.9m) in the year ended 31 December, against GBP456,000 in 2009.

For the period, group sales were down 7% to GBP200.1m, which it attributed to the reduced EU intervention price for sugar.

Chairman Pieter Totte said that this year has been the "toughest ever in terms of margin" for its sugar business as it was trading on the last stage of the EU sugar regime reform, "with a reference price drop of 28% over the 2008 level".

He said that the company's views regarding the market following the EU regime changes have "so far been vindicated".

"We felt that the market in the EU for the 2010-2011 campaign would be tight in supply and would therefore see price increases. During the final quarter of 2010, prices started to go up, albeit at a much higher level and faster than expected," said Totte.

Click here for the company's full earnings statement.