Associated British Foods this morning (3 November) hailed an improved performance at its Allied Bakeries business, which has seen profitability increase over the last two years.
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Speaking to analysts during a conference call, ABF chief executive George Weston said that the company was pleased with improvements made at its UK Allied Bakeries unit, which manufactures the Kingsmill and Allinson breads.
“Allied Bakeries has a good year – good sales growth, good share growth and good profits growth,” Weston revealed.
Declining to put a figure on profit generated at the unit, Weston did emphasise that investments in the business have begun to pay off in terms of improved profitability.
“It made money last year. It made more money this year. There is still some way to go, but we are getting to a level where shareholders would want us to be,” he commented.
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By GlobalDataABF posted a 4% increase in pre-tax profit, which rose to GBP655m (US$1.07bn). Sales gained 12%, increasing to GBP9.3bn.
The company said that its results were also boosted by a strong performance at its UK and African sugar businesses and gains in home baking sales.
However, margin compression and volume pressure at ACH, ABF’s North American edible oils business, dented profits.
“As a whole, first half problems in ACH – which were over by Easter – held our profit back,” Weston indicated.
