LONDON, Nov 7 (Reuters) - Associated British Foods expects profits in its sugar business to fall in its 2017-18 financial year after rising 537 percent in 2016-17, its boss said on Tuesday.
“We expect the profits of sugar to come down in the current year,” Chief Executive George Weston told Reuters.
He said although the sugar business will benefit from higher volumes and lower costs in 2017-18, that would not be enough to offset the effect of much lower prices in the European Union.
AB Foods reported adjusted operating profit for sugar of 223 million pounds in 2016-17, up from 35 million pounds in 2015-16.
The group reported a 20 percent rise in full-year earnings.
Shares in AB Foods were down 4.2 percent at 3,201 pence. (Reporting by James Davey, Editing by Paul Sandle)