Real Good Food profits dented by costs

By Catherine Boal

- Last updated on GMT

Related tags: Baking, Baker, Marketing, Renshaw

Bakery buy-out business the Real Good Food Company (RGFC) has
announced increased sales in its bread and cakes sector but said
growth was affected by high energy costs and internal investment.

In interim results released yesterday, bakery sales rose 5 per cent and baking ingredients also showed growth with profits of £0.6m (€0.89m) and sales of £13.8m (€20.4m).

But while operating profit grew in the baking sector, the company said investment in product development and management, combined with higher energy and labour costs had stunted figures slightly.

After a disappointing set of results last year, subsidiary ingredients business Renshaw underwent a substantial management overhaul.

According to RGFC, the change in management structure has gone some way to recuperating lost profits and sales and the company expect the traditionally busy Christmas period to further improve figures.

Chairman Pieter Totte said: "With bakery ingredients, the critical trading time is the 'Christmas production' period - generally September to December.

"As may be expected, sales in the very warm July were poor across the bakery sector but despite this Renshaw appears to have come through this satisfactorily and the business is well set to hit expectations."

RGFC's second major baking business, Haydens Bakeries, which produces luxury cakes and desserts, stepped up supply to supermarket chain Waitrose and landed several new customers within the industry - opening up further avenues for growth.

Yesterday's results show overall operating profits at the company rose from £0.8m (€1.2m) to £4.7m (€6.9m) - boosted by the acquisition of sugar supplier Napier Brown in September last year.

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