Associated British Foods drops as Sugar leaves a bitter taste

The price of shares in Primark owner Associated British Foods (LON:ABF) dropped by 2.85% to 2,287p (as of 14:35 BST) after it said that strong profits from the Primark and Grocery divisions during the year ended 14th September would be offset by the expected decline in the sugar arm.

Grocery revenues and operating profits were well ahead of the prior year despite costs associated with the closure of the Twinings factory in China. European sugar prices dropped and a weak crop in China affected output. Retail revenues were up by 4%, but like-for-like sales were down by 2% due to an increase in sales space.