real good food plc said friday that market conditions in early fiscal 2023 have been challenging with volumes down both on year and compared with prepandemic levels and it expects to take further costcutting measures the food manufacturing business said that for the five months ended aug 31 volumes were down 29 on year and 16 lower than its prepandemic benchmark of fiscal 2020 the company said it has increased prices and reduced costs to partially mitigate the volume fall but it was incurring losses before interest taxes depreciation and amortization the company has accelerated customer negotiations to address the widening gap caused by cost inflation it said operations are still being hit by daily supply shortages and erratic deliveries the cost of sugar has doubled and overall costs are around 30 higher market conditions have remained extremely challenging due to a perfect storm of rising costs and lower revenues resulting in a reduction in managements expectations for the current financial year executive chairman mike holt said the company said it was determined to hunker down control costs and protect revenue and it was working with consultants to put a radical reform plan into effect which will require employee reductions it expects overhead cost savings of up to 32 million pounds 36 million under the plan the company is in advanced discussions to secure an additional gbp25 million of funding to support the restructure it added