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.
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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.”
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By GlobalDataThe 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.
