First half sales up 20% at Real Good Food

SUGAR supplier to cake maker The Real Good Food Company says first half sales and earnings are well ahead on 2010.

In a trading update the Liverpool-based group said sales in the six months to June 24 are up 20.1% to to £110m while EBITDA was £2.7m compared with £600,000 a year ago.

RGF owns Napier Brown, the largest independent non-refining distributor of sugar in Europe, and is a supplier of dairy ingredients (“Garrett”), bakery ingredients (Renshaw) and a manufacturer of sweet bakery products (Haydens) for a range of major retailers.

During the trading period it said it had continued to achieve improved operational performance, with increased volumes in sugar, dairy and bakery ingredients year-on-year, and had taken steps taken to deal effectively with the difficulties in the sugar supply chain, where prices remain high and material in short supply.

Having to pay more for raw ingredients has pushed up borrowings from £28.3m to £31.9m.

Executive chairman Pieter Totté, said: “During the second half of 2011 our management teams will remain focused on the key challenges of extending the Renshaw brand in retail, expanding the Whitworth speciality sugar range, widening product offering at Garrett’s and improving operational performance at Haydens.

“Based on the progress we have made over the past six months, I am confident that the Group is on course to meet market expectations for the year.”

The firm said a new marketing team at Leeds-based Napier Brown is looking at further developing the Whitworths sugar brand. After carrying out extensive consumer research, the first range of innovative new products, targeting the growing home baking market, will be on supermarket shelves in the autumn.

Product development has also been a feature in the Renshaws division where a launch of “Snip and Swirl” Icings is under way and available in selected retailers, sugar-craft outlets and wholesalers.

At Haydens, the new distribution facility is now fully operational and is already helping drive an improved performance year-on-year.