“Very strong trading” has helped Associated British Foods post a 20% jump in half-year profits.
The manufacturer said pre-tax profits rose to £331m in the six months to 27 February, with group sales up 10% to £4.8bn.
Sales in its grocery business jumped 4%, from £1.54bn last year to £1.6bn, boosted by strong sales performances from brands including Twinings and Ovaltine.
The company reported “good growth” from its Allied Bakeries division, which makes Kingsmill.
ABF’s sugar business also saw sales increase from £931m to £645m during the period, while cut-price clothing chain Primark notched up a 19% hike in sales.
“The investments made in recent years are now delivering very satisfying returns throughout the group,” said ABF chief executive George Weston.
“Our sugar business has been transformed, our brands and marketing strategies are driving growth in grocery, the broad geographic base continues to drive momentum in ingredients and Primark goes from strength to strength."
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