Associated British Foods has said it expects to grow sales and profits this year despite rising commodities costs.

The Kingsmill baker said at its latest AGM that although it “remained cautions over the uncertain economic outlook”, it expected to improve its financial performance over what it called an "exceptional year" in the previous 12 months.

“Trading results for the first two months of the new financial year were in line with expectations,” said Associated chairman Charles Sinclair.

“Higher sugar prices are expected to improve our sugar profitability, we aim to recover higher wheat costs and higher cotton prices will have some impact on Primark's margins.”

He added: “We continue to invest in the development of our businesses and further returns will be delivered as these investments complete.  Last year saw a step change in the group's profitability and we expect to achieve revenue and profit growth in the current year.”

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ABF hails ‘exceptional year’ as profits soar (9 November 2010)
Kingsmill and Primark buoy sales at Associated (8 July 2010)