Real Good Food Co anticipates 'significant growth' as sugar price hits 30-year high

By Elaine Watson

- Last updated on GMT

Related tags: Napier brown, Price, Supply and demand

Totté: 'Significant growth'
Totté: 'Significant growth'
Real Good Food Co is anticipating significant growth this year driven by a dramatic reversal of fortunes in its Napier Brown sugar business and an "exceptional" performance in bakery ingredients.

In a trading statement covering the period since the group's full year results were announced on September 22, chairman Pieter Totté said tightening supplies had led to a strong recovery in sugar pricing levels at the start of the new contract season in October.

The firm, which posted a £1.3m pre-tax loss in the first half blamed on lower sugar prices following last year’s reference price change and the withdrawal from low-margin contracts, said it was now seeing strong growth at Napier Brown, as a global shortage in sugar supplies had driven prices to a 30-year high.

Plans were also in place to broaden its sugar supply base and invest in its Normanton manufacturing site to cash in on growing demand, said Totté.

But there was also good news from bakery ingredients division Renshaw, which was having an "exceptionally good year​", while the turnaround strategy at patisserie and desserts manufacturer Haydens Bakery was also starting to deliver, he added.

Sugar prices hit 30-year high

"Dramatic changes to the world sugar market point to significant prospects at Napier Brown, Renshaw is successfully exploiting new markets while Haydens has secured the space to expand and modernise its business.

"We anticipate a strong Christmas trading period, are on track to meet forecasts for the current year, and look forward to significant growth in the coming year."

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