Bread helps boost ABF profits

Associated British Foods (ABF) has posted a 26% increase in annual profits – thanks to an impressive performance by its discount clothing chain, Primark.
Among its food businesses, Kingsmill bread was a star performer, increasing its market share following last year’s launch of the Little Big Loaf. However, ABF has warned that its margins would also come under pressure due to rising wheat costs.

“In the UK we are negotiating higher prices now although we have been paying higher wheat costs for a couple of months already,” says chief executive George Weston.
However, he adds that the company’s grain wholesale and animal feed business should benefit from the increase in price.