The Real Good Food Company, the bakery and ingredients group, has said it is well on track to double the size of its business in the next three years.
Unveiling its interim results for the six months to 31 December, the company, which owns sugar distributor Napier Brown and bakery ingredients firm Renshaw, said its performance had been driven by a “focus on brand development” and by “driving sales growth”.
Underlying profit (ebitda) increased by nearly 27% in the period from £5m to £6.5m – but for the calendar year 2011 it was up by a whopping 62% from £5.6m to £9.1m.
Continuing profit before tax was up by a staggering 148% to £5.7m, from £2.3m in 2010, and the group explained it had seen an increased ebitda in its key trading divisions of Napier Brown, Garrett and Renshaw.
Pieter Totté, executive chairman of The Real Good Food Company, said: “I am extremely pleased that the progress we have made is reflected in a significant improvement in our financial performance during 2011.
“With trading starting positively in January, and divisional management achieving further progress in their improvement programmes, I am confident of meeting our expectations for 2012, and of remaining on track to achieve our aspiration of doubling the size of the business within three years.”
He added: “We have a clear growth plan. 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. We are also benefiting from our adjustment to the structural development in market supply affecting our biggest business, Sugar, in which we moved from a surplus market to a deficit market, with associated higher prices and the need to secure surety of supply.”
An increased focus on baking at home helped boost Renshaw, the company said. “Retailers, with supporting media coverage, are maintaining a focus on cake decorating and home baking, which is bringing new consumers into the category and leading to greater prominence in-store and new listings for Renshaw products,” it explained in a statement.
Napier Brown has been successful in extending its sugar supply base and the group reported: “The experience gained in supplying these sugars is invaluable as a point of difference, with customers looking for options outside the traditional beet refiners. Investment in sugar handling systems is planned to allow sugar from a variety of sources to be imported, handled and delivered cost-effectively.”
The company is also pinning its hopes on a continued revitalisation of the Whitworths brand with the addition of a number of new retail listings.