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Associated British Foods has reported a 19% increase in
group revenue for the 40 weeks to 21 June.
Revenue was boosted by strong growth in its agriculture,
grocery, ingredients and Primark clothing businesses,
the food manufacturer to clothing retailer said.
Sales in its grocery division were 22% ahead of last
year because of price increases across the business
which had successfully recovered input cost inflation.
Volume increases and Associated British Foods'
acquisition of Patak's had also boosted revenue, with
Twinings, Ovaltine and the new World Foods business
performing strongly.
In its ingredients division, sales rose 18% but
Associated British Foods said higher raw material and
energy costs would impact margins in the second half of
the year.
Profit would also fall short in its sugar business
because of the EU sugar regime reform.
?Continued high commodity costs and substantial
increases in energy prices are a significant feature of
the trading environment,? Associated British Foods
added.
?Difficult economic conditions are having an impact on
consumer demand. Nevertheless, with the exception of
sugar, we continue to expect profit in the rest of the
group to show progress in the second half.?
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