Revealing its preliminary results for the year ended 16 September, Associated British Foods said that while group revenue has increased during the period profits have dropped due to increased energy costs, the reorganisation of the company's sugar operations and investments in capital and acquisitions.

Group revenue increased by 7% to GBP6bn (US$11.75bn), with adjusted operating profit increasing 1% to GBP561m. However, adjusted profit before tax was down 4% to GBP559m and adjusted EPS dropped 3% to 50.9 pence per share.

With investment in capital expenditure and acquisitions totalling GBP760m operating profit dropped by 21% to GBP413m, profit before tax was down 20% to GBP419 and earnings per share declined 21% to 38.1 pence after an exceptional charge of GBP97m for the reorganisation of British Sugar.

George Weston, chief executive, said: "This year's performance demonstrates the resilience of the group in the face of a steep increase in energy costs and the profit impact of EU sugar regime reform. We have taken major steps in the development of our businesses this year. In particular, British Sugar and Primark have emerged stronger and better positioned."