Real Good Food lifts sales

published 3 July 2012

Liverpool based sugar producer the Real Good Food Company lifted sales for the 15-months to end March following a robust performance from Renshaw and Garrett Ingredients.

Revenue for the 15-month period increased to £305.5m from £249m for 12 months to 31 December 2010. EBITDA jumped 62% to £9.1m during the same period.

Last year Real Good Food announced it was moving its reference date from 31 December to 31 March to better align its financial reporting with its trading seasonality.

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Napier Brown, Garrett and Renshaw all increased their EBITDA performance year on year, the cake maker and ingredients supplier said.

Chairman Pieter Totte commented: "In 2011 we delivered on our commitment to return to growth in sales and profitability. We are now embarking on an exciting period designed to transform the scale of the group over the next three years. This strategy is rooted in robust plans produced by each individual business and we have restructured the group to support these."

The group saw a significant improvement in EPS adjusted (fully diluted excluding significant items) at 5.7p for 15 months to 31 March 2012 up 119% on 2.6p for 12 months to 31 December 2010.

Net Debt as at 31 March 2012 fell to £28.7m from £29.4m at 31 March 2011 in line with expectations.

Last month Mauritius-based sugar giant Omnicane increased its stake in Real Good Food to 20%, helping Real Good Food reduce debts and provide alternative sources of sugar following the Sugar Regime reform.

"Customers in the EU are looking for alternative sources of sugar to provide competition to the reducing number of big EU beet producers," Real Good Food explained.

"Omnicane can provide the experience and expertise in cane refining and Napier Brown can provide the routes to market, particularly in Europe where customers want and need new supply sources," it said.