Annual profits at Kingsmill bread-to-Patak’s cooking sauces group Associated British Foods have jumped by more than a quarter, the company said today (8 November).
ABF booked adjusted pre-tax profits of 26% to GBP825m (US$1.33bn) for the year to 18 September. Adjusting operating profit was also up 26%, reaching GBP909m. Revenue climbed 10% to GBP10.2bn.
ABF’s grocery business, which also includes brands like Twinings tea, Jordans cereals and Ryvita crispbread, posted a 20% increase in adjusted operating profit to GBP229m. Profits were helped by restructuring within the division and a recovery of ABF’s US bottled oils business.
Revenue from ABF’s grocery arm increased 7% to GBP3.41bn thanks to the benefit of currency translation on the company’s sales in Australia from its George Weston Foods business. At constant currency, sales were flat.
Chief executive George Weston said: “This year’s outstanding results represent a step change for the group. A number of major projects will be completed over the coming year which will underpin future profit delivery and provide a platform for further growth. Opportunities for further attractive investment are plentiful and the group has the financial capacity to exploit them.”
ABF, however, was cautious about its outlook for the year ahead, citing uncertainty over the impact on consumer spending from fiscal policy in Europe and “significant” increases in commodities, including cotton and wheat.
Shares in ABF were down 1.2% at GBP1060p at 09:47 GMT this morning.
Click here for the complete earnings statement from ABF.