14th Feb 2022 10:55
(Alliance News) - Real Good Food PLC shares tumbled on Monday after the food producer said that sales in December and January had been "much lower than anticipated" due to Omicron related supply issues, delivery challenges and high absence rates.
Shares in RGF were trading 9.1% lower at 2.50 pence each on Monday morning in London.
Liverpool-based Real Good Food blamed its "much lower than anticipated" sales performance in December and January on severe shortages and irregular deliveries of certain ingredients and services.
This, combined with, high absence rates because of the Omicron variant, affected its ability to fulfil customer orders, it said.
However, it believes that these issues are going to be short term and expects them to improve in the coming months.
Nonetheless, revenue for the second half is anticipated to be "at a similar level" to the same period last year, despite a pick-up in sales to the Wholesale sector. In financial 2021,
Furthermore, international sales that were expected to show double-digit growth are going to be "marginally below" last year's numbers, it noted.
However, overall, RGF still expects to make a small profit at earnings before interest tax, depreciation, and amortization level broadly similar to underlying Ebitda reported a year before, as the result of increased costs during the second half.
In financial 2021, RGF booked an underlying adjusted Ebitda of GBP227,000.
By Abby Amoakuh; [email protected]
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