Associated British Foods shares rise despite fall in profits

The price of shares in Associated British Foods (LON:ABF) has risen by 5.16% to 2,365p (as of 10:40 GMT) despite an 8% drop in statutory pre-tax profits for the year ended 14th September which was largely due to a large exceptional charge and costs linked to the closure of businesses. Group revenues were up by 2% in both actual and constant currency terms.

CEO George Weston commented: “The group delivered a resilient performance this year, with strong profit growth from Grocery and Primark which more than offset the profit decline in Sugar. We continued to pursue the opportunities to grow our businesses with a gross investment of over £800m. Next year the group is well-positioned for further progress, with the continued expansion of Primark, a material improvement in our Sugar profit and strong profit growth in Grocery“.