Real Good Food sales jump 27%

By Oliver Nieburg

- Last updated on GMT

Related tags Good food Real good food Value added

Real Good Food businesses
Real Good Food businesses
UK bakery and ingredients firm Real Good Food has posted sales and profit growth in its half year results.

The group, which includes bakery ingredients firm Renshaw and bakery manufacturer Haydens attributed the performance to brand development and efficiency initiatives.

Results roundup

Real Good Food sales for the sixth months ended 31 December 2011 stood at £139.3m, up 27% on the same period in 2010.

Group EBITA also oversaw 27% growth to £6.4m.

Executive chairman Pieter Totté said: “Our strategic focus is on creating solid sustainable profitability based on self-help initiatives including brand development, sales growth and risk management." 

“We are now seeing significant benefits coming through from this.”

He added that trading in 2012 had so far been positive and the company was on track to double the size of the business within three years.

Haydens

The group’s bakery manufacturing arm Haydens experienced a tough start to trading over the period due to rising commodity costs.

However, Real Good Food said this business ended the year with a record sales month and had gained from the current market trend for hand-crafted bakery and chilled value added products.

Blast freezing and chilling equipment

A new distribution facility for Haydens was opened in May last year; however factory redevelopments had been delayed.

The company now expects to introduce blast freezing and chilling equipment to the manufacturing during the second quarter of 2012.

“This should have a major impact both on material and labour efficiencies on short manufacturing runs as well as providing additional capacity to support growth,” ​said the company.

Other businesses

The group said its bakery ingredients business Renshaw had benefitted from a media focus on home bakery and cake decorating bringing new customers to the category.

Real Good Food added that Renshaw would be subject to operational improvements in the coming months, but did not provide further details.

During the period, the group also re-established its bakery coating and jams business R&W Scott as a separate trading division from Renshaw to reduce exposure to commodity costs.

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