Associated British Foods today (10 July) reported a fall in third-quarter sales from its grocery arm due to the loss of contracts from its Silver Spoon retail sugar business in the UK.
The company said revenue from its grocery division dropped 5% at constant exchange rates in the 16 weeks to 21 June.
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The UK-based group, which has also has grocery businesses in markets including the US and Australia, said the “majority of the decline” was down to the end of the contracts and “considerably lower UK sugar pricing”.
After the lower sales in the third quarter, ABF said revenue from its grocery business for the first nine months of the year was flat compared to the corresponding period a year earlier.
In a mixed trading update, ABF lifted its forecast for annual adjusted earnings per share, which the company said was now expected to be ahead of last year. It said “better profit progress” from its grocery, ingredients and clothing retail arm Primark was offsetting lower sugar prices and the strengthening of sterling.
In Australia, revenues at George Weston Foods “made further progress as meat volumes continued to improve”, ABF said. In North America, the company said trading at ACH “remains encouraging” with a “particularly good performance” from oil brand Capullo in Mexico.
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