AB Foods confident of earnings uplift

14th Jan 2010 07:14

Primark and British Sugar owner Associated British Foods had a better than anticipated end to 2009, and said it expects a ‘significant increase’ in operating profits in 2010.Group revenue in the 16 weeks to 2 January was 17% higher than in the corresponding period of the previous year, or 11% on a constant currency basis.The Sugar business put in a strong performance, with sales up 68% year on year, or 23% with the acquisition of Azucarera excluded, while turnover at Primark was 19% higher than a year earlier. The Agriculture and Grocery arms both improved revenues by 4% whole the Ingredients division saw turnover jump 11% from a year earlier.The net debt position benefited from the company’s rights issue and remained below £1bn at the end of 2009.The company said net financing costs this year will be higher but with the benefits of its recent investments and restructuring programme feeding through the group is ‘confident of good progress in earnings for the full year.’