AB Foods trading on track

10th Dec 2010 12:39

Associated British Foods says that its first two months trading of the financial year is in line with expectations but management is still cautious.ABF is worried about how the financial problems in Europe will hit consumer spending. Higher sugar prices should improve the profitability of the British Sugar business. However, other commodities are also rising in price. ABF hopes to pass higher wheat prices on.Higher cotton prices will impact discount fashion retailer Primark's margins. ABF still expects to achieve revenue and profit growth in this financial year.