A B Foods trading update sends shares soaring
News that Associated British Foods is on track for higher second-half earnings, and expects ‘some progress’ in full-year profits despite substantially higher debt costs, has sent shares in the company soaring by more than three per cent.
AB Foods, which owns the brands Twinings, Kingsmill and Silver Spoon, as well as budget fashion chain Primark, says progress in its UK grocery business was led by a strong performance from its Allied Bakeries division. Twinings Ovaltine also saw growth, particularly from Ovaltine in developing markets, and from high consumer demand for Everyday tea. Meanwhile, Silver Spoon benefited from increased demand for home baking ingredients which, combined with distribution gains, resulted in higher sales and market share across the Silver Spoon sugar and Allinson flour ranges.
