SUGAR FIRM PROFITS DROP

Directors highlight ongoing fight to cut operating costs

Falling sugar prices have been blamed for the third annual drop in profits for Peterborough-based British Sugar. The alarm has been sounded after its parent company Associated British Foods (ABF) posted its trading results for the last year.

The figures show that for the 52 weeks to September 12 this year British Sugar saw revenues drop by 13 per cent to £1.82 billion compared to £2.08 billion a year earlier.

Adjusted operating profits plunged 77 per cent to £43 million from £189 million in the previous year.

British Sugar employs about 300 people at its offices in Oundle Road, in Woodston. It also has processing plants in Bury St Edmunds, and Wissington and Cantley in Norfolk.

The slump in sugar prices wiped out gains made by clothing retailer Primark, also owned by ABF, to leave the group’s pre-tax profits down from £1.02 billion to £717 million.

But chief executive George Weston said he was hopeful that the situation would improve next year.

He said: “This is the third year of significant profit decline for AB Sugar as a consequence of falling EU and world sugar prices.

“It is encouraging that EU prices have now stabilised and the steps we have taken, and continue to take, to reduce our cost base, are aimed at creating a profitable business at these price levels and in a postquota environment in the EU.

He added: “Sugar profit was, as expected, substantially lower than last year as a result of much weaker eurodenominated EU sugar prices, but the business made great strides in reducing operating costs.”