Sugar Prices Weigh On Real Good Food Company
British ingredients supplier The Real Good Food Company has reported mixed trading conditions, durin…British ingredients supplier The Real Good Food Company has reported mixed trading conditions, during its third-quarter trading period.
The company, which is headquartered in Liverpool, reported strong earnings across three of its businesses which was offset by a “dramatic” fall in sugar prices in the European Union.
Executive chairman Peter Totte (pictured) highlighted challenging conditions, particularly for specialist sugar business Napier Brown and Garrett Ingredients, who were badly affected by volatile gar 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,” he said.
The group said Renshaw, which supplies ingredients such as marzipan to the baking sector, expects to post a “significant increase” in full-year earnings after ramping up investment in marketing.
Totte 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.”
The RGFC forecast that an improved use of labour at the Haydens Bakery division would put it in a strong position to grow pre-tax profit in the coming year.
Meanwhile the group also announced that it has hired the former boss of British Sugar Gino De Jaegher as its chief operating officer with immediate effect.