Annual profits from Associated British Foods’ grocery business, which includes Kingsmill bread and Jordans cereal, fell 23%, the UK-based group said today (6 November).
Adjusted operating profit from the grocery arm, which also sells brands like Ryvita crispbread, dropped to GBP187m in the year to 15 September from GBP244m a year earlier.
Go deeper with GlobalData
ABF pointed to the cost of restructuring parts of its businesses in the UK and Australia. It also cited a “difficult retail and competitor environment” in Australia, where it sells products under brands including Tip Top.
Revenue from the grocery business was up 1% at GBP3.73bn.
Group adjusted operating profit increased 17% on the back of an 11% rise in revenue. ABF chief executive George Weston pointed to “exceptional performances” from its discount clothing chain Primark and its sugar arm.
Net profit rose from GBP577m a year earlier to GBP583m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataChairman Charles Sinclair gave a cautious outlook for the year ahead. He said ABF expects profits from sugar to fall but for the decrease to be “more than offset” by growth at Primark and a recovery in earnings from grocery.
Shares in ABF were down 0.51% at 1,359p at 09:41 GMT.
Click here for views from analysts in the City on ABF’s grocery results.
