ABF demonstrates resilience
1 min read
Announcing its annual sales and profits today (4 November), giant plc Associated British Foods (ABF) said that although worldwide consumer spending was under pressure, its grocery, agriculture and Primark retail business all grew strongly.
ABF said the year saw steadily worsening economic conditions with sharp rises in input costs, particularly raw materials and energy, and falling consumer confidence. In the circumstances, said chairman Martin Adamson, the group had delivered good results with operating profit up 7%.
Looking ahead, Adamson said the economies in which the group operated faced “extremely testing conditions”. There was also very great uncertainty about how these conditions would develop over the coming year. However, ABF expected to maintain capital investment at planned levels in spite of the economic outlook.
Revenue for the year was up 21% to £8.2 billion while pre-tax profit eased up 4% to £527 million.
Chief executive George Weston (pictured) said: "These good results demonstrate the resilience of the group. Consumer spending in many parts of the world has been under pressure for some months. Despite this, grocery, agriculture and Primark all delivered strong sales and profit growth. While faced with a general economic downturn, we remain committed to the group's expansion and development, most notably in sugar and Primark.”
The group is the second largest sugar producer in the world with its British Sugar brand being the sole processor of the UK beet sugar crop. AB Agri sells animal feeds and micro-ingredients to farmers and purchases grain and oilseeds from them. The grocery business includes Twinings, Ovaltine, the Indian cuisine brand Patak's, Ryvita, Jordans and the bakery brands Kingsmill, Allinson and Sunblest. ABF’s ingredients arm includes the production of herbs and spices, sauces, corn syrup, starch and yeast for home baking. The retail division, Primark employs over 25,500 people at 181 stores in the UK, Ireland and Spain.
