Lower sugar prices weighed on sales and led to widening losses during the first half of The Real Good Food Co.’s fiscal year, the UK firm said today (22 September).
Sugar sales at the group’s Napier Brown arm were down 19% during the six months to the end of June, which helped push down company-wide turnover by 10.8% to GBP90.7m (US$142.3m).
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Real Good Food said it had seen “strong sales growth” from its baking ingredients business and its cakes and desserts division, but the company’s pre-tax losses stood at GBP1.3m – against GBP1.2m a year earlier. The group’s net loss reached GBP935,000, compared to GBP889,000 a year ago.
Nonetheless, chairman Pieter Totté said he was “delighted” with the company’s “progress” during the first half of the year.
“We have achieved significant sales growth at our bakery ingredients and bakery businesses and while sugar has had a more difficult run with lower prices following the end of the EU regime, the summer saw this being reversed to our benefit,” Totté said.
“In sugar we are now seeing tighter and wider supply conditions and improved pricing, while Renshaw and Haydens are well placed entering their key trading season. All this gives me confidence in achieving market expectations for this year and for the further development of all our businesses in the coming years.”
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By GlobalData
