Associated British Foods has reported that its hot beverages business continues to trade very well.

At its AGM, the company said sales of its main brands and sub-brands in the sector were increasing worldwide.

Following EU proposals to reform the sugar regime, ABF said it expected the outcome to be better than the £40m reduction in profit it estimated earlier this year.

The proposals will reduce productive capacity in the EU, eliminate subsidised exports and reduce support prices.

ABF added that profits had grown 30% at Primark, its clothing retail business, and said it aimed to roll out new stores in the next 15 months.