Bakery ingredients firm, the Real Good Food Company said it was trading in line with expectations but had been hit by increases in commodities.
Revenues were up to £137.8m in the first half, from £128.2m the previous year.
However, increased prices, particularly for sugar, helped push profits down to £3.02m, from £3.09m in the first half of 2011.
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Earnings per share came in at 1.5p, down from 1.9p previously.
Executive Chairman Pieter Tott said his firm was going into the critical Christmas trading period with all businesses "in a strong position to maximise commercial opportunities".
"At the same time we continue to develop our medium term growth plans, and I am confident the group will deliver results for the year as a whole in line with market expectations," he said.
The company's sugar sourcing division, Napier Brown, saw sales revenue increase 11% year-on-year, due to higher volumes and increased market prices.
But its bakery ingredients firm, Renshaw, saw a drop in earnings and the company said it would now focus on the expert sugar-craft market.
It also noted that a recovery plans at its patisserie and desserts arm, Haydens Bakery, were taking longer than expected.
Shares were off 3% at 11:45 on Tuesday.
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