ABF Maintains Profits Momentum
Despite the uncertain economic outlook for western economies, Associated British Foods has confirmed that it expects to achieve revenue and profit growth in its current financial year, building on the step change in group profitability achieved in the year ended September 18th 2010. ABF reported a 10% increase in revenue to £10.2b and a 26% rise in adjusted operating profit to £909m for 2010.
Trading for the first two months of the current financial year is in line with expectations. ABF has noted recent, significant increases in some commodity prices. However, higher sugar prices are expected to improve the profitability of the group’s sugar businesses, and it aims to recover higher wheat costs. “We continue to invest in the development of our businesses and further returns will be delivered as these investments complete,” says Charles Sinclair, chairman of ABF.
