Associated British Foods has forecast “good growth” in half-year profits despite an expected fall in earnings from its sugar business.
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The UK-based group issued a trading update this morning (25 February) ahead of its interim results for 1 March, which will be reported in April.
The company said it expects its underlying operating profit to rise due to growth from its agriculture, grocery and retail divisions.
Grocery profits are expected to be much higher than the same period last year, ABF said, as a result of improvements by Allied Bakeries and strong performances from Twinings Ovaltine and George Weston Foods in Australia.
However, profits from ABF’s sugar business in the UK and Poland are expected to be much lower than last year as a result of further effects of the EU sugar regime changes.
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By GlobalDataThe company warned that recent frosts in southern China may affect sugar production, although firmer prices will have some mitigating effect on profit.
