Charles Sinclair, ABF chairman, told the firm’s Annual General Meeting, that he expected the outlook for economic growth in developed economies to remain subdued in the medium term.

Although commodity costs are subsiding, the effect of forward purchasing means that the benefit to the group will not be felt immediately, he reported.

Good start

“Improved sugar pricing is expected to benefit AB Sugar in the coming year and we have made a good start to production campaigns in the northern hemisphere,” added Sinclair.

After recently completed capital investments, the firm expects to see growth in sales and adjusted operating profit during the next 10 months. The profit improvement will be weighted towards the second half, said Sinclair.

Graham Jones, executive director equity research at analyst Panmure Gordon, said in a note: “We remain confident in our 14% EPS [earnings per share] growth forecast for the year and, with the shares having drifted lower, in our view the shares are attractive…. Buy.”