Real Good Food record real good sugar sales

By Catherine Boal

- Last updated on GMT

Following the acquisition of sugar supplier Napier Brown Foods, UK
bakery firm Real Good Food Company (RGFC) has seen turnover
increase more than five-fold - despite the impact of the recently
introduced EU sugar reform.

Last September's sugar buy has proved a profitable one for RGFC who recorded an interim turnover of £113.4m (€167.9m) this week.

Despite falling prices and industry instability caused by the newly-implemented EU sugar regime, RGFC has managed to sustain profits through improved management, cost reduction in administration and increased efficiency in processing and distribution.

Sales at Napier Brown were £81.8m (€121.2m) and profits £2.8m (€4.1m) indicating that streamlining the subsidiary with the remainder of RGFC's businesses had kept profits in line with expectations.

However the company were reticent to boast of continuing sales growth for the sugar supplier.

In a statement chairman Pieter Totte said: "There is some evidence that the European sugar market is stabilizing although we believe that it remains sensible for us to wait for improving conditions before commenting more positively."

The RGFC was set up as a buyout group in February 2003 and has subsequently taken over businesses that trade in cakes, patisseries and sandwiches.

The acquisition of Napier Brown for £67.7m (£100.3m) last year was part of a strategy to expand the company's position in the UK market and build purchasing and selling power.

Napier, who supply UK supermarket chain Morrisons, manufacture a range of chocolate toppings, caramels, syrups and nuts for the confectionery industry.

Related topics: Commodities, Cocoa & Sugar

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