Lower sugar price dents Real Good Food performance
REAL Good Food Co, the Liverpool-based manufacturer and supplier of sugar and other catering ingredients, saw its third quarter results hit by declining sugar prices.
The listed company owns ingredients firms Napier Brown, Garrett, Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.
In a third quarter trading update for the three months to December, it said Renshaw, R&W Scott and Haydens recorded growth in earnings before interest, tax, depreciation and amortisation (EBITDA), but added, “we continued to be affected by the well-publicised dramatic reduction in sugar market prices”.
“We have made good progress in addressing this with a number of new supply sources secured in the past three months and we see sugar margins being fully restored during the course of 2014,” said the company.
Chairman Pieter Totté said: “The investments which we have made in increased sales and marketing resources were designed to transform our businesses from being manufacturing-led to market-led and underpin our growth strategy.
“It is pleasing to see that this strategy is now beginning to bear fruit: 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 and we are encouraged by the support being given to us by customers who recognise the valuable role we play in the market.”
