Tough year for sugar at Real Good Food

29th Mar 2011 13:47

Reforms in the EU sugar regime held back sales at Napier Brown, the sugar business of Real Good Food Company, causing a 7% decline in total group revenues. The sugar, dairy and bakery products group saw revenue fall to £200.1m in 12 months ended 31 December, down from £215.6m previously. Sales at Napier Brown dropped by a fifth from £134.9m to £108.4m in 2010, while an operating profit of £1.65m in 2009 swung to a loss of £0.08m.Chairman Pieter Totté said that "The doubling of the world price for raw sugar between July and September 2010 meant that Europe, which following the sugar regime reforms has become a net importer, very quickly began to experience a shortage in sugar supply," as world producers found local markets more attractive, given the 28% fall in reference prices on 2008 levels (minimum prices imposed by regulators).Partly offsetting this impact were the performances of its other three divisions - Garrett Ingredients (Dairy), Renshaw (Bakery Ingredients) and Haydens (Bakery) - which all grew revenue modestly over the year.Group pre-tax profit increased to £1.95m, from £1.63m in 2009, while basic earnings per share grew from 1.3p to 2.3p.BC