UK food processor Associated British Foods (ABF) has reported its annual results for the 52 weeks ended 14th September 2024, revealing it had a “very strong” year.
ABF announced group revenue of £20,073 million, was up from the 2023 rate of £19,750 million. The processor attributed revenue growth to its food and retail businesses.
It achieved an adjusted operating profit of £1,998 million, up from £1,513 million in 2023. This was a 38% increase based on constant currency.
ABF also recorded an operating profit of £1,932 million, an increase of 40% from the 2023 rate of £1,383 million.
Its grocery sales were up 4%, which the business said reflected “strong margin improvement overall” while investing in marketing. The ingredients category saw sales growth of 2% and an adjusted operating profit up by 12%, which it said was led by yeast and bakery ingredients.
Sugar sales and adjusted operating profit performed “strongly” ahead of 2023, but European sugar prices “reduced sharply” in Q4 2024.
George Weston, chief executive of ABF, said: “This was a year of very strong financial and operational progress across the Group. We delivered a substantial improvement in profitability, excellent cash generation and strong returns as a result of consistent, multi-year investment and a return to some normality in our markets and supply chains. Above all, these results reflect the excellent work and disciplined focus of our people.
“Our food businesses delivered good growth and strong profitability this year. We are benefitting from an easing in input costs, as well as our increased investment in marketing, strong commercial execution and good product innovation.
“Looking ahead, the Group is well-positioned. Strong cash flow generation is enabling disciplined capital allocation to growth opportunities across the Group and we have ongoing multi-year projects to deliver our focused sustainability priorities. We believe our long-term, patient investment approach will deliver strong returns and continue to create value for all stakeholders.”
