Following investments in new capacity and improved automation, Real Good Food Co announced today that its bakery division, Hayden’s, has reported significant growth in sales to all three of its major customers; Marks & Spencer, Waitrose and Costa Coffee.
The London-listed Company is a supplier of sugars and bakery ingredients and a manufacturer of bakery products. Over the past year, the Company has reported considerable improvements in operations and finances, resulting in a reduction of its bank borrowings from GB29.1m to GB21.3m as well as improving retail sales of sugar and other baking ingredients. Overall sales increased by 15%, with double-digit growth achieved with all major customers. Food service sales, which launched in 2008, accounted for almost 10% of total 2009 revenue. Factory utilisation rose to 65% over the year, aided by increased market share and development of the discounter sector. Growth in the home-baking market and distribution to smaller industrial outlets also contributed to this growth.
Pieter Totté, Executive Chairman, commented:
"I am delighted by the progress we have made over the past year in developing new sales, expanding our product ranges and broadening our customer base. After a strong start to the current year, it gives me confidence that we are well placed to build on this progress."
In the medium term, the Company plans to build on this progress with the launch of the Whitworths 25kg Pure Cane Sugar product this month. Further investment in flexibility of pack format is planned for 2010. Whereas bulk sugar sales reduced slightly in 2009 as a result of market weakness, following the final phase of the EU Sugar Regime changes in October, the Company has already gained sugar contracts for 2010. The management team, led by Managing Director, Paul Smith, is now overseeing a major investment in the business to double its size over the next four years.
Given the progress made in 2009, the Company expects profits for the period ending 31st December 2009 to be approximately 25% above current market expectations.
