LONDON--Real Good Food Company PLC (RGD.LN) Friday swung to a
large fiscal 2014 pretax loss, primarily due to the impact of its
ongoing sugar supply dispute with British Sugar.
For the year ended March 31, the company posted a pretax loss of
1.5 million pounds ($2.59 million), compared with pretax profit of
GBP5.2 million, on a revenue of GBP272.6 million and GBP265.8
million, respectively. The sugar dispute reduced the company's
earnings before exceptional items, interest, taxes, depreciation,
and amortization, by GBP7.2 million to GBP3.3 million.
Earlier this year, company's sugar distribution unit, Napier
Brown, filed a complaint to the Office of Fair Trading regarding
"an abuse of a dominant position" by British Sugar, a unit of
Associated British Foods PLC (ABF.LN).
"We remain in close dialogue with the Competition and Markets
Authority and are hopeful that the regulator will take the
necessary steps to ensure that competition law is enforced,
Chairman Pieter Totte said.
The sugar and ingredients expects the dispute with British Sugar
to materially affect its performance in the first half of fiscal
2015.
Shares of Real Good at 0702 GMT are trading around 2% higher at
31 pence.
Write to Tapan Panchal at tapan.panchal@wsj.com
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