UK food ingredients and desserts supplier Real Good Food Co. has reported a jump in annual profits thanks to a focus on “value-added” business.
The company today (1 February) posted pre-tax profits of GBP5.7m (US$9m) for the year to 31 December, up from GBP2.3m a year earlier.
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Real Good Food Co. said its “key” trading divisions of Napier Brown, Garretts and Renshaw all generated higher EBITDA. Desserts unit Haydens and newly-formed chocolate coatings and jam division R&W Scott were unable to offset the impact of increased commodity costs until later in the year.
However, reflecting on its results as a whole, Real Good Food Co. said “sales growth” and a focus on “value-added” supplies were the “key drivers” in its increased profits.
Executive chairman Pieter Totté said: “I am extremely pleased that the progress we have made is reflected in a significant improvement in our financial performance during 2011.”
Real Good Food Co. said “brand development and improved product offerings” would be central to delivering growth from R&W Scott and reducing its exposure to commodity volatility.
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By GlobalDataThe company’s plans to redevelop its Haydens factory have started six months later than planned. There have been changes to shift patterns at the site to reduce costs and the firm hopes the introduction of blast freezing and chilling equipment will further increase efficiency.
Real Good Food Co. said the roll out of branded Renshaw products would continue this year. Meanwhile, the company added that it was “hopeful” the “revitalisation of the Whitworths retail brand would start to bear fruit” after securing new listings this year.
Shares in Real Good Food Co. were down 1.9% at 51.75p at 14:40 GMT.
