In a brief pre-AGM update on Friday, Associated British Foods (ABF), the owner of brands such as Twinings, Patak’s and Kingsmill, stated that trading to date in its new financial year across its Grocery, Sugar, Ingredients and Agriculture units had been in line with expectations.
However, group Chairman Michael McLintock noted that the business was experiencing the impact of the widely reported port congestion and lorry driver shortages, leading to higher costs.
“We have seen an escalation in the cost of energy, logistics and commodities, and we have been implementing plans to offset these through operational cost savings and, where necessary, the implementation of price increases,” he said.
The group added that trading in its Primark clothing chain had been ahead of expectations, with improved like-for-like sales compared to the fourth quarter of its last financial year.
ABF stated that it was managing supply chain disruption by prioritising products most in demand with it having stock to cover on the vast majority of lines for the key Christmas trading period.
Last month, ABF reported a statutory operating profit of £808m for its 2021 financial year, broadly in line with the previous year. Combined revenues of its food operations and Primark edged up 1% to £13.88bn.
