The Real Good Food Company, the UK bakery manufacturer, said today that “some stability” had returned to the market after a long period of “very challenging” conditions. 


Updating the market on its performance in the six months to 30 June, the company said that changes to the EU sugar regime and a cut in sugar production quotas had helped to move the EU sugar market into balance.


Real Good Food also said that the merger of sugar and bakery ingredients businesses to form Renshawnapier had gone “according to plan”.


Although margins at Renshawnapier were below last year, some improvement was seen in the second quarter and the restructuring move is beginning to generate overhead savings, the company said.


Revenues at the group’s bakery division, Hayden’s, rose 12% year-on-year, benefitting from promotional volumes and new food service customers. Price increases were also pushed through in the second quarter and are expected to have a positive effect on margins, Real Good Food said.

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“The merger of the two principal pillars of the group to form Renshawnapier has gone well and according to plan. This new division is performing in line with expectations, although behind the prior year, while Hayden’s is performing in line with expectations and up on the prior year,”  CEO Stephen Heslop concluded.


The company will publish its interim results at the end of September.