The Real Good Food Company has seen continued growth in its bakery and bakery ingredients businesses. However reduced sugar cost levels in the market has led to a 19% drop in sales in its sugar business Napier Brown.

Its bakery ingredients arm Renshaw saw sales up 13%, while Haydens Bakeries saw larger sales growth of 20% for the six months to 30 June 2010.

“We have achieved significant sales growth at our bakery ingredients and bakery businesses and while sugar has had a more difficult run with lower prices following the end of the EU regime, the summer saw this being reversed to our benefit,” commented chairman Pieter Totté.

Despite the downward sales trend, Totté said the sugar market is now seeing “tighter and wider supply conditions and improved pricing”.

Overall group sales for the half year were down 11% to £90.7m, which the firm put primarily down to the lower sugar prices.