UK: Sugar issues weigh on Real Good Food Co. trading
Fall in sugar prices has hit Real Good Food Co.'s Napier Brown business
Shares in The Real Good Food Co. dropped today (4 February) after the UK food group reported "mixed" trading in its third quarter as a fall in prices hit its sugar business.
The company said three of its four divisions - Renshaw, R&W Scott and Haydens - saw EBITDA increase in the three months to the end of December.
However, it said its Napier Brown sugar arm "continued to be affected by the well-publicised dramatic reduction in sugar market prices".
Nevertheless, the group said it had secured "a number of new supply sources" and insisted: "We see sugar margins being fully restored during the course of 2014."
Executive chairman Pieter Totté said Real Good Food Co.'s moves to make its business "market-led" were "bearing fruit".
He added: "Volumes are showing good growth in Napier, Renshaw and at Haydens, while we have now recruited sales and marketing teams to deliver similar momentum at R&W Scott and Garrett Ingredients. The instability in the sugar market is giving us short term challenges but our strategic plans in this market remain sound."
The company, meanwhile, announced the appointment of former British Sugar MD Gino De Jaegher as its new COO.
Shares in Real Good Food Co. were down 4.22% at 62.5p at 10:49 GMT.
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