ABF performance ‘in line with expectations’

The grocery division benefited from a reduced level of provisioning for the cost of manufacturing reorganisation while Twinings Ovaltine and the UK businesses performed well but George Weston Foods in Australia disappointed. In Allied Bakeries, Kingsmill achieved volume and market share increases although margins came under pressure from the continued rise of wheat costs which have only been partially recovered through price increases, said ABF in a trading statement. Overall, operating profit ould be ahead of last year with all segments except the company's ingredients division making progress. Profit from sugar will be ahead of last year but while the UK beet sugar campaign started well, the very sharp rise in temperature in January following the prolonged period of extremely cold weather before Christmas had an adverse effect on the quality of sugar beet still in the ground at that time. The group's retail arm, Primark, saw a slowing down of UK consumer demand although revenue will be ahead of last year mainly as a result of the increase in retail selling space.