Weather-hit UK Sugar Business to Undermine ABF’s Profits
Associated British Foods has cautioned that although further growth is expected for the coming year, following a step change in the group’s profitability last year, this will be moderated by the eventual impact of the adverse weather conditions on its UK sugar business.
In an interim management statement for the 16 weeks to January 8th 2011, ABF says that the very recent sharp rise in temperature following the prolonged period of extremely cold weather before Christmas is having an adverse effect on the quality of sugar beet still to be processed. Some 75% of the crop has been processed but the effect on the remainder is still to be determined. A further update will be provided in the pre close period trading update on February 28th 2011.
The bad weather has also delayed the final stages of construction of Vivergo’s bioethanol plant by two months and production is now expected to commence at the beginning of the new financial year.
