RGD.L Regulatory News (RGD)

20 October 2021

Real Good Food plc

("RGF" or "the Group")

AGM Statement and Trading Update

Ahead of its Annual General Meeting being held later this morning, Real Good Food Plc (AIM:RGD) announces a trading update for its current financial year ending 31 March 2022 to date.

As reported when the Group issued its final results for the year ended 31 March 2021, RGF has seen a pick-up in revenues across each market year to date. For the first six months to 30 September 2021, revenues were 30.8% ahead of the same period last year (to 30 September 2020) and 0.7% above the same period of the year before last (to 30 September 2019). Sales to UK retailers are performing particularly well, with growth of 12.9% on last year and 3.7% on the year before last.

Unaudited EBITDA for the six months was £0.5 million compared to an EBITDA loss of £1.4 million last year, and an EBITDA loss of £0.2 million for the six months to 30 September 2019, respectively. This is reflective of the Group's actions to increase margins within each business unit, albeit margins are being affected by surcharges on freight and transport which are currently expected to represent a drag of circa £0.3 million on this year's profitability. The biggest impact of these logistics challenges, coupled with ongoing staff absence rates from COVID-19, is on order fulfilment and on-time delivery which is an issue shared across our industry and supply chain.

New product innovation is a key driver to performance and increasing profitability. Revenue for the six months to 30 September 2021 include 39 new products with sales of £0.5 million (£1.4 million annualised).

Mike Holt, Executive Chairman commented:

"We have made a good start to the year and the Group is well positioned for the seasonally busier second half of the year. It is pleasing to see the turnaround activities within JF Renshaw gaining traction, particularly in new product innovation. Renshaw has regained its reputation as the product innovator and first choice supplier of quality products, both branded and private label."

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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