Kingsmill profits will be down – ABF

By Nicholas Robinson

- Last updated on GMT

Kingsmill profits will be down - ABF
Kingsmill profits will be down - ABF

Related tags United kingdom Price Food

Intense competition in the UK bakery market will hit Kingsmill’s profits this year, according to the brand’s owner Associated British Foods (ABF).

Constant price cutting in the big four supermarkets to battle discounters Aldi and Lidl had significantly reduced the brand’s profits, ABF said in a preclosing statement for its interim results to February 28.

 “The UK bakery market remains intensely competitive, with a combination of over-capacity in the industry driving manufacturers towards marginal pricing, and retailers seeking to prove their value credentials in essential shopping items such as bread,” ​the statement said.

Other parts of the business

Meanwhile, trading for other parts of the business was in line with expectations, it added.

ABF’s sugar business was expected to come close to breaking even, however, profits would still be “substantially lower” ​than last year, it said.

Its ingredients and agricultural arm had made “excellent progress” ​and were forecast to turn a profit of £22M and £25M respectively in the first half of 2015.

ABF’s interim results to February 28 are scheduled to be announced on April 21.

Related topics Bakery

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