A surge in profits at its sugar arm has enabled Associated British Foods to absorb an uncharacteristically weak contribution to its annual results from Primark, the discount clothing retailer.
ABF reported a pre-tax profit of £757 million (€881 million) for the year to September 17th, down 1 per cent on the £763 million recorded a year earlier. The drop reflected a smaller profit on the sale or closure of businesses. Sales rose 9 per cent to £11.07 billion.
Adjusted operating profit rose 1 per cent to £921 million after profits from ABF’s sugar production and processing division surged almost a third to £315 million, aided by an increase in Chinese sugar beet production and strong sugar prices.
Primark, which trades as Penneys in Ireland, saw its profits fall 8 per cent to £309 million after the retailer chose not to pass the full cost of cotton price increases to its customers. – Copyright The Financial Times Limited 2011
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