Higher margins at Allied Bakeries should help parent company Associated British Foods (ABF) post positive full-year results.
In an update prior to its expected announcement in November, ABF reported that operational improvements had boosted margins, while its grocery division had achieved good revenue in the second half of the year to September – driven mainly by progress in Allied Bakeries.
“The ingredients businesses continued to benefit from the weakness of sterling against the US dollar and the euro,” said a statement.
Overall trading for the group, which also owns the highly profitable fashion chain Primark, had been strong since the half-year, resulting in an increase in adjusted operating profit for the second half compared to last year.
ABF’s UK business delivered good results, with robust sales, the benefit of a strong euro and favourable energy costs.