The Real Good Food Company (LON:RGD) said its Napier Brown business faced a “significant challenge” from the dramatic drop in EU sugar market prices.
However, it appears to be meeting that challenge head on as it reported volumes, in both the industrial and retail markets, have increased significantly from the start of the new contract season.
“We anticipate our Whitworths sugar brand achieving a consumer sales value of more than £100mln over the next 12 months,” said chairman Pieter Totté.
His comments came as the group unveiled its interim results, figures which showed that the group posted a more than £7mln decline in first half revenues to £130.1mln. This reflected lower sugar volumes over the selling season ended in September.
Earnings before interest, depreciation and tax also fell – to £2.2mln from £3.02mln previously – following planned investment in the business of £700,000. This was spent on additional commercial resources and the establishment of an office in Brussels.
RGF said branding and sales initiatives at Renshaw and R&W Scott, the bakery ingredients businesses, and Haydens, which produces patisseries and desserts, are “delivering in line with expectations”.
The company said in the next financial year some 25% of group sales will be come from branded products.
Chairman Totté added: "Once again we approach the key Christmas trading period with the group well placed to benefit from the traditional seasonal boost in sales, and I am pleased with the continued progress we are making in re-shaping the group.”