View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 8, 2020

Coronavirus – Real Good Food expects “material impact” on sales as new fiscal year starts

Real Good Food has reported an increase in annual revenues and profits but the UK-based firm said it expects a "material impact" on sales from Covid-19 going forward.

By Dean Best

Real Good Food has reported an increase in annual revenues and profits but the UK-based firm said it expects a “material impact” on sales from Covid-19 in the first quarter of its new financial year.

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

The London-listed cake decorations and ingredients supplier, which also owns a stake in snack bar manufacturer Brighter Foods, posted a 9% gain in sales in the 12 months to 31 March and a 178% increase in adjusted EBITDA. Real Good Food (RGF) said today (8 April) that while its performance was “broadly in line” with expectations, coronavirus did impact the company in the final month of its fiscal year.

All of its manufacturing facilities remain open and customers are being supplied “in line with reduced levels of demand”, RGF said in a statement to the stock exchange.

RGF laid out the current issues the sector is experiencing: “The manufacturing sector is likely to be able to maintain or grow sales; the wholesale sector has had a downturn due to its customers in the restaurant and leisure sectors having to close premises; and the retail sector has focused on filling shelves with ‘essential’ products, and has changed some order patterns, whilst rationalising some niche products and colours.” 

Mike Holt, the firm’s non-executive chairman, said: “We are grateful to our staff and stakeholders as we work together through this challenging period. The budgets we were signing off just a short time ago are now being updated to include all the measures we are taking to ensure that the Group has a sustainable business going forward. We believe the food industry is resilient and that Real Good Food is well placed within the segments we serve and given the quality of our products and operations.”

In view of the drop off in demand associated with Covid-19, RGF said production planning is being reviewed to “rationalise” its product mix. Also, since coronavirus first emerged in China late last year, the company said it had found alternative sources of raw materials in Europe that would normally have come from suppliers in the Asian country.

RGF added in today’s statement: “We are working to prepare the business for varying levels of revenues and have modelled the effects of these, whilst reviewing all the measures we can take to ensure that the Company exits this period with a sustainable business model for the future.

“We have close working relationships with our major shareholders and funders who remain supportive. In common with other companies, RGF is reviewing all options to mitigate the impact of the reduced sales.” 

Related Companies

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food