ABF published its trading results for the fourth quarter of the 2026 financial year, which is set to end on 12th September 2026. The food manufacturer is home to brands such as Abbott’s Bakery, Allinson’s, Blue Dragon, Dorset Cereals and Kingsmill.

Ingredients sales are expected to increase by approximately 10% in Q4. ABF’s yeast and bakery ingredients business, AB Mauri, delivered good growth across most of its markets. Its portfolio of speciality ingredients businesses, ABFI, continued to grow well overall, according to the company.

ABF completed its acquisition of Hovis in July, commenting that it was “progressing at pace” with the integration of its production and distribution facilities within its bakeries business. Looking ahead, it expects its Grocery adjusted operating profit to be slightly below its previous expectations.

In the UK and Spain, sugar sales and profitability declined in Q4 due to lower average selling prices in Europe compared with Q4 2025. Profitability was also “significantly impacted” by the recognition of onerous contract provisions due to continued low European sugar prices, said ABF, with higher gas costs and lower yield expectations for the 2026/27 UK beet crop following the prolonged hot and dry weather. The lower yield expectations were said to reduce the absorption of fixed production costs.

Agriculture sales are expected to decrease in the mid-single digits in Q4. ABF’s feed and additives businesses delivered “good growth”, offset by lower sales in its dairy business.

ABF to focus on operational performance

George Weston, chief executive of Associated British Foods, commented: “The Group delivered resilient trading in the quarter. The Hovis integration is well underway.

“Grocery and Ingredients both delivered good growth in the quarter, although the prolonged hot weather in the UK and Europe impacted consumer demand for Twinings tea. While a number of factors contribute to our negative outlook for Sugar in 2027, the recent positive turn in European and global sugar pricing should benefit future years.

“Across the Group, we continued to take actions and make strategic capital investments to drive performance. On top of the integration of Hovis Bakeries, we announced the restructuring of our UK Sugar and Agriculture businesses and completed multi-year capital projects. A sharp focus on operational performance across the Group reinforces our confidence in the Group’s long-term growth prospects.”