Associated British Food’s finance director has suggested that the international sugar price has fallen so dramatically in recent months that it is now at “an unsustainably low level, putting further pressure on industry revenues and margins”.
John Bason said profits would fall in the company’s sugar business, although the division would not fall into the red and ABF would still hit expected full-year profits thanks to a strong Christmas period at its jewel Primark. The High Street chain said like-for-like sales in the first half are expected to be up 4% thanks to warehouse changes allowing it to hold stock for less time.
Bason said: “I said the same in 2011 when Primark profits fell and sugar rose — the strength of this company is that we have a diverse range of businesses so if one part is feeling the pinch, another can pick up the slack.”
He said there are no plans to start selling Primark clothes online, after a disappointing trial with Asos.
