Real Good Food said its pretax loss narrowed in fiscal 2023 despite revenue decreasing on macroeconomic headwinds, particularly in the U.S. and Europe.
The food manufacturing business said Thursday that its pretax loss narrowed to 9.0 million pounds ($11.1 million) in the year ended March 31 from a loss of GBP19.0 million in fiscal 2022, although the prior-year figure was dragged by a GBP16.1 million impairment.
Revenue fell 20% to GBP32.4 million, reflecting 26% lower volumes, with the most severe reduction being U.S. sales which were 32% lower, and Europe sales coming in 22% lower.
The company said the weaker volumes were due to challenging market conditions, rather than customer losses.
Demand has been higher in the first five months of fiscal 2024, despite sales being broadly the same due to cash constraints, it said.
“Market conditions remain challenging; we are however starting to see volumes in some segments beginning to slowly rebuild and we are gradually trading our way into a better place as the busier autumn season kicks in,” Executive Chair Mike Holt said.