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Sugar sweet for Associated British Foods

Sugar sweet for Associated British Foods

Sugar sweet for Associated British Foods

  • 19 April 2017
  • From the section Business

A line of Primark shopping bagsImage copyright
PA

Food-to-fashion group Associated British Foods (ABF) has reported a leap in first-half profits, driven by a recovery at its sugar businesses and continued growth at its Primark chain.

Pre-tax profits jumped by 35% to £624m in the 24 weeks to 4 March, with revenues up by 19% to £7.3bn.

ABF said profit growth in the second half would be “tempered” by the weaker pound pushing up the cost of imports.

However, it added the outlook for full-year profits had improved.

Chairman Charles Sinclair said: “The growth in earnings achieved in the first half has been excellent. We expect the underlying revenue momentum in all of our businesses to continue in the second half.

“However, profit growth in the second half will, at current exchange rates, be tempered primarily by a smaller translation benefit and the full effect of the devaluation of sterling against the US dollar on Primark’s margin.”

AB Sugar had benefited from a rise in sugar prices and “significant savings” achieved as a result of performance improvements, the company said in a statement, leading to a “more acceptable return on investment”.

Source : BBC News – Business

Sugar sweet for Associated British Foods

Sugar sweet for Associated British Foods

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