AB Foods grows thanks to Primark

07-Nov-2019 - United Kingdom

The British conglomerate Associated British Foods (AB Foods) has more than offset a decline in profits in the sugar segment thanks to good business in its Primark textile chain and food. Adjusted operating profit increased by one percent to 1.42 billion pounds sterling (1.64 billion euros) in the year under review (mid-September), as AB Foods announced in London on Tuesday.

As expected, the Group was able to increase revenues in all divisions except the sugar business. Revenues here fell by 7 per cent to 1.6 billion pounds. At Group level, sales revenue rose by 2 percent to £15.8 billion.

Primark operates 373 stores in twelve countries, 30 of which are in Germany, and employs 78,000 people worldwide.

However, the group is becoming somewhat more pessimistic for the fashion chain Primark. Primark contributes a good half of AB Foods' turnover and 58 percent of its operating profit. Despite cost reductions, AB Foods expects the margin to decline in the first half of the financial year due to the development of the pound sterling.

In addition to retail with Primark, AB Foods is also active in the agricultural and pet food business. The Group also mixes with brands such as Twinings tea and Mazola germ oil as well as yeast and other baking additives in the food industry.(dpa)

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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