Associated British Foods plc issued an update on its interim financial results. The company notes the interim results for the group will be in line with expectations, with all segments delivering good revenue growth. Adjusted operating profit will be ahead of last year with all segments, except ingredients, making progress.
For the company’s ingredients division, although revenue will be ahead, operating profit is expected to be below last year as a result of the commissioning costs of the new yeast extracts factory in Harbin, China, higher molasses prices in China and competitive pressure in the European and US yeast businesses. Bakery ingredients performed well in South America and domestic yeast volumes in China were higher than last year. At ABF Ingredients, sales of feed and bakery enzymes and yeast extracts continued to make strong progress with enzymes particularly benefiting from the success of new products.