Associated British Foods PLC (ABF) has reported in the 24 weeks to February 27 revenues were down 2% to £6.1bn and profits held back to a 3% rise to £486m due to foreign exchange.
While profits were well ahead in ingredients and profit margins improved in grocery and agriculture, the transaction effect came down hard on Primark and British Sugar.
ABF also cautioned on the potential impact of the UK government’s planned levy on sugar in soft drinks. It pointed out that sugar may not the only cause of rising levels of obesity, which the tax is designed to reduce.
The turnaround at British Sugar generated a £6m operating profit from revenue down 9% to £843m, though a considerable swing to a 3% gain would have been the case if currency effects were ignored.
Agriculture revenues were down 15% to £491m and profits down 4% to £22m, while revenues at Ingredients were down 3% £595m but profit inflated 43% to £40m.
George Weston, Chief Executive of Associated British Foods, said, “These results demonstrate underlying progress for all of our businesses in the period despite currency. Good buying and selling space expansion continued at Primark, cost reduction and performance improvements contributed to a better result at Sugar, profits were well ahead at Ingredients, and profit margins improved at Grocery and Agriculture.”