After solid half-year results, management at Associated British Foods confirmed that it expects substantial profit growth for the full year. That's likely to be led by continuing strong performances from its sugar business and improving profitability at Primark as cotton prices fall back.
The sugar business saw operating profits climb 59 per cent to £172m, largely underpinned by excellent growing conditions that meant record beet yields in the UK and Spain and a higher sugar content in its crops. Investment in its factories over the past few years meant extraction rates were higher, too. With the benefit of strong EU sugar prices this will mean full-year sugar profits will be well ahead of last year, despite substantially lower sugar profits in China, where prices weakened steadily throughout 2011.