Real Good Food PLC Trading Update (7935V)
February 02 2017 - 1:00AM
UK Regulatory
TIDMRGD
RNS Number : 7935V
Real Good Food PLC
02 February 2017
Strictly embargoed until: 07.00: 2 February 2017
Real Good Food plc
("the Company" or "Real Good Food")
Trading Update
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.
*-ends-*
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).
ENQUIRIES:
Real Good Food plc Tel: 020 3857 3900
Pieter Totté, Executive
Chairman
David Newman, Finance Director
Andrew Brown, Marketing Director
finnCap Limited (Nomad and Tel: 020 7220 0500
Joint Broker)
Matt Goode / Grant Bergman
(Corporate Finance)
Tim Redfern (Corporate Broking)
Belvedere Communications Tel: 020 3567 0510
(PR)
John West
Kim van Beeck
This information is provided by RNS
The company news service from the London Stock Exchange
END
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