The Real Good Food Company, parent of sugar supplier Napier Brown plus Renshaw and Haydens, has this morning revealed a 21% increase in total group sales to £109.8m.

Unveiling its interim results for the six months to 30 June it said sales had increased from £90.7m the year before and that it had seen a “significant increase” in underlying profit to £2.7m, up from £0.6m.

The group said it was pleased with its progress – particularly as it had been impacted by increased commodity costs in its first half – and it added that it had capitalised on a growth in home baking both here at home and in the US.

Pieter Totté, chairman of The Real Good Food Company, said: “I am very pleased by the progress we have made during the first half, particularly as we have had to contend with increased commodity costs and challenges in the sourcing of sugar supplies. Despite this, we have achieved growth in all of our businesses, a substantial uplift in ebitda, while continuing to invest for further growth.

“Our management teams have worked hard to ensure that increased commodity costs are passed on to customers and, while this will continue to be reflected in working capital, looking forward we are expecting net debt to reduce by the end of the year as we generate cash in our key trading period. Initial reaction to the Renshaw product launches has been extremely positive, and we are now preparing to launch our new range of speciality sugars under the Whitworths brand.

“After a three-year period in which our trading performance has been overshadowed by the impact of EU sugar reforms, we are now more in control of our own destiny. We have the people and the products to make considerable further progress and I therefore look to the group’s future with growing confidence.”

At Napier Brown, the company said it had worked hard  to secure new sources of sugar, but that the tight market supply situation within Europe had prompted an increase in its customer base. The company added: “Our supply base for 2012 has broadened, and our ability to manage these multiple sources will stand us in good stead. Meanwhile, much work has been done on developing our Whitworths brand in retail sugar, and this will start to bear fruit in 2012.”

Renshaw continued to enjoy sales growth by capitalising on the revival of home baking markets both in the UK and abroad, added the group. The business is now about to enter a new phase of its growth plan with the launches of a series of Renshaw-branded products across the retail, sugarcraft and wholesale trade sectors and the company reported that it will be investing in support campaigns to drive sales of these new ranges.

A new distribution centre has opened for Haydens and is now fully operational.

>> Sweet success for Real Good Food