Food ingredient and cake decorating company Real Good Food expects profits to remain flat for 2022.
The Liverpool group, which operates Renshaw, which offers cake ingredients such as sugar paste, marzipan and icing, and Rainbow Dust Colours, which sells edible cake decorations and exports worldwide, said that he had entered his “second half of the year, seasonally busier, in good shape.”
However, December and January sales were much weaker than expected.
In an update for its current fiscal year ending March 31, 2022, RGF said this was due to severe shortages and erratic deliveries of certain ingredients and services, compounded by staff shortages due to the variant omicron, which affected its ability to fulfill customer orders. .
He said the problems are short-term and will improve in the coming months.
As reported in the December 2021 half-year results, first-half revenue and EBITDA were both well above last year’s first-half performance, with revenue returning to pre-existing levels. covid (S1 FY20).
Sales in the second half are expected to be at a similar level to the second half of last year, despite a recovery in sales to the wholesale sector.
International sales, which were expected to post double-digit growth, will be slightly lower than last year’s figures.
RGF said: “Overall, with costs increasing in the second half of the year, the Group is expected to realize a small profit at the EBITDA level broadly similar to the underlying EBITDA reported in the prior year. “
Cash in the half was £2.7m, a modest cash inflow should be reported for the second half.