The Real Good Food Co has suffered almost a 6% drop in revenue, after lower sugar volumes hit performance in the six months to 30 September 2013.
Group revenue dropped from £137.8m to £130.14m, while ebita fell 27% from £3.02m for the comparable period last year, to £2.2m. However, the firm said this was primarily a reflection of its planned investment of £700,000 across the group.
The company said its financial performance had been “largely as we expected”, as it continued to re-shape the business by investing in its branded offering and additional sales management.
Pieter Totté, executive chairman, said: “In Napier Brown we face a significant challenge over the coming months, following the well-publicised dramatic drop in EU sugar market prices as we bring our buying book in line with this correction in market prices.”
He added that Napier’s sales volumes had increased significantly from the start of the new contract season in October 2013.
“Elsewhere within the group, our branding and sales initiatives at Renshaw, R&W Scott and Haydens are delivering in line with our expectations and we anticipate that in our next financial year some 25% of group sales will be represented by branded product. This demonstrates how our business model is evolving.”
Its patisserie and desserts business Hayden’s Bakery saw sales in the first half of the year, up 11.6% on the same period last year, with growth coming from existing and new customers across both retail and foodservice channels.