Real Good Food improves annual earnings

Napier Brown, Garrett and Renshaw divisions post strong results.

New Statesman
Pieter Totté, executive joint chairman (1), Mike McDonough, group finance director (2), Peter Salter (3) and Christopher Thomas (4).

The Real Good Food Company has reported a pre-tax profit of £4.36m for the 15 months ended 31 March 2012. The European sugar distributor posted 15-month revenues of £305.5m (12 months/2010: £200.10m). EBITDA was £9.18m (2010: £5.63m). On a like-for-like basis, the group grew in volume by 5.3 per cent in 2011.

Net debt (at 31 March 2012) was £28.7m, compared to £29.4m for the same period last year.

The company’s Napier Brown sugar division posted revenues of £176,885 for the 15-month period (12 months/2010: £108.40m).

The Garrett Ingredients division reported a 20.3 per cent rise in turnover for 2011 to £30.8m, driven by a 5.3 per cent volume increase in dairy ingredients and higher commodity prices.

Renshaw, which works in bakery ingredients, posted 15-month revenues of £46.37m (12 months/2010: £34.32m), while R&W Scott – which produces chocolate coatings and sauces, jams and dry powder blends – posted revenues of £14.4m (12 months/2010: £8.47m).

The Haydens Bakeries division, meanwhile, had a difficult year in 2011 on two fronts. Significant material cost increases that were not reflected in sales price increases until the fourth quarter and factory development started later than planned, preventing management from delivering the cost-reduction opportunities from production efficiencies and improved material usage.

Revenue growth of 3.7 per cent in 2011 was not sufficient to offset the combined impact of these pressure points, resulting in EBITDA dropping to a loss (£0.4m) in 2011 with the trend largely the same for the 15 month period.

Pieter Totte, executive chairman of RGFC, said:

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.