Strictly embargoed until: 07.00: 2 February 2017
Real Good Food plc
("the Company" or "Real Good Food")
Real Good Food plc (AIM:RGD) today gives the following update on trading. As highlighted at the time of interim results, the Company makes the majority of is profits in the second half of the year which includes the important Q3 trading period for Cake Decoration and Premium Bakery in particular in the run up to Christmas. The Company is pleased to confirm that overall sales continue to grow and were strong in Q3, up 8% year on year.
As widely reported elsewhere, the overall trading environment for food manufacturers remains difficult with the biggest factors affecting Real Good Food being the short term impact of high commodity prices, especially butter, sugar and oils, all key ingredients for the Group, and a weakening of sterling post Brexit. The cost of butter in particular has more than doubled in price. The timing of these factors was unfortunate as it coincided with Q3 and has adversely impacted EBITDA margins. Notwithstanding this margin pressure, the Company remains confident that it will be reporting revenue and EBITDA for the full year in line with current market consensus.
In common with its competitors, Real Good Food, having examined all options to mitigate the impact, has now implemented targeted price increases and expects margins to be largely restored by the start of the next financial year.
About Real Good Food plc
Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Group focuses on three main markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food Ingredients (Garrett Ingredients and R&W Scott) and Premium Bakery (Haydens and Chantilly Patisserie).
Real Good Food plc
Pieter Totté, Executive Chairman
David Newman, Finance Director
Andrew Brown, Marketing Director
Tel: 020 3857 3900
finnCap Limited (Nomad and Joint Broker)
Matt Goode / Grant Bergman (Corporate Finance)
Tim Redfern (Corporate Broking)
Tel: 020 7220 0500
Belvedere Communications (PR)
Kim van Beeck
Tel: 020 3567 0510