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Real Good Food says earnings could fall short of market views

Staff Writer | December 6, 2016
Real Good Food said its pre-tax loss widened in the six months to the end of September and warned there was a risk its year-end EBITDA could miss market expectations.
Real Good Food
Real Good Food   The Food Ingredients business struggled
The company reported a loss before tax of £949,000 compared to £216,000 the year before as administrative expenses rose to £10.2m from £8.8m.

Total group sales were up 5% to £49m, driven mostly by the performance of the Premium Bakery division, alongside the successful integration of Chantilly.

However, the Food Ingredients business struggled with volatile commodity pricing and adverse currency movements.

Executive chairman Pieter Totte said: "We have continued to make good progress on developing our growth strategies in each business division. With the exception of Garrett Ingredients where the dairy and sugar markets have continued to be difficult, exacerbated by recent currency fluctuations, trading performance has been broadly in line with the board's expectations."

The company said sales trends in the key third quarter are in line with expectations to date and it expects significant year-on-year growth in EBITDA in the second half.