UK bakery, sugar and ingredients firm The Real Good Food Company has this morning (17 July) issued a mixed trading update as it battles rising commodity costs and weak demand.
The company, which supplies food manufacturers and retailers, said it had endured a challenging first half of 2008 due to more expensive raw materials and only partly recovering costs with higher prices.
Chairman Pieter Totte said the company was “confident” of achieving a “satisfactory” result for the full year but said the first six months had been “challenging”.
Totte said: “The first half has been characterised by challenging market conditions, with lower sugar prices on the one hand and higher prices in our bakery and bakery ingredients businesses on
Sales from the company’s sugar division were down 10% due to the loss of one account and lower prices linked to EU reform of the sector.
Revenue from the firm’s bakery division was down 4% due to a “poor performance” on two “key lines”. The group said it had only partially managed to recoup rising costs through price rises and said further price hikes would be necessary later in the year.
However, turnover from The Real Good Food Company’s bakery ingredients climbed 13%.