ABF revenues up – but pre-tax profits fall
Associated British Foods (ABF) has reported a 12% rise in revenues to £9.3 billion this year. However, its pre-tax profits fell 6% to £495 million after a £65m loss on the sale of the group’s American packaged oil business. Adjusted pre-tax profits rose 4% to £655m.
Profits in the group’s sugar business rose by 24% after reforms to the European sugar regime were completed. ABF will not benefit from the present high sugar prices as prices in Europe are protected from the commodity market.
While other parts of the business have benefited from the recession, the growth of Twinings tea has slowed as consumers have traded down to other brands.
