Alexa
  • Directory of Taiwan

Associated British Foods expects "good growth" in profit

Associated British Foods expects "good growth" in profit

Associated British Foods PLC, the owner of the Twinings tea brand and the Primark fashion retailer, said Monday first-half profit will show "good growth."
"Strong growth in agriculture, grocery and Primark more than offset the expected, and previously reported, decline in sugar," the company said in a statement.
ABF did not provide specific figures.
In the first half of the year, the company spent 120 million pounds (US$236.1 million; euro159.3 million) on acquisitions, mainly on some of the assets of Gilde Bakery Ingredients and on sugar beet factories in north east China.
Net financing costs rose during the period due to new investments, higher costs and rising interest rates, but ABF expects this to be offset by a reduction in the tax rate to 25 percent from 27 percent in the same period a year earlier.
"Sugar profit in the U.K. and Poland will be much lower than last year mainly as a result of the further effects of the EU sugar regime changes," the company said. Nevertheless, "Grocery profits will be much higher than the same period last year."
That will largely be driven by improved performances by its Allied Bakeries, Twinings Ovaltine and George Weston Foods businesses.
Shares in ABF dipped 0.7 percent to 870 pence (US$12.11; euro11.54) on the London Stock Exchange.


Updated : 2021-10-17 02:11 GMT+08:00