ALLIED BAKERIES OWNER, ASSOCIATED BRITISH FOODS, PROFITS UP 18 PERCENT

Independently owned Associated British Foods (ABF), whose brands include Allied Bakeries’ Kingsmill and Sunblest, Primark and Twinings Ovaltine, have announced pre-tax profits up 18% to £1,020m despite a 3 per cent decline in revenue in the retail giant’s latest financial year.

The group said Primark had “another magnificent year”, increasing profits by 30 per cent at constant currency and adding a total of 1.2 million sq ft of additional selling space. Total sales at the budget fashion chain were up 16 per cent to £4.95bn.

At Allied Bakeries, whose Bredbury plant has recently had a £30m+ investment, revenues and profit were ahead of last year with higher branded sales and an increase in market share. Successful new products this year included Kingsmill Great White, a white bread with as much fibre as a wholemeal loaf, which was launched in February supported by an in-store marketing campaign and television advertising.

New re-sealable packaging with a refreshed design drove further growth of Kingsmill wraps, and towards the end of the year Allied Bakeries launched Sandwich Thins which are proving very popular. Following its re-launch last year, the Allinson brand received further national advertising support this year and achieved further growth.

PLANT INVESTMENT

The five-year capital investment programme to upgrade its UK bakeries is almost at an end: modernisation of the Glasgow bakery completed during the year; the installation of a new bread plant in Stevenage is due to be commissioned in November and the proposed closure of the Orpington bakery was announced in August with employee consultation nearing conclusion.

Associated British Foods is a diversified international food, ingredients and retail group with sales of £12.9bn and 118,000 employees in 47 countries. It has significant businesses in Europe, southern Africa, the Americas, China and Australia.

George Weston, (left) Chief Executive of Associated British Foods, said:

“I am pleased to report growth of 6% in adjusted earnings per share. Significant progress was achieved in operating profit by Grocery, Agriculture, Ingredients and Primark, all of which substantially out-performed last year. Primark’s trading success and significant expansion delivered another magnificent year. Much lower sugar prices in the EU held back the group’s profit growth although, operationally, Sugar performed well.”