AB Foods set to hike prices as costs surge

Posted On Sep 4 2021 by

first_img whatsapp Show Comments ▼ Thursday 20 January 2011 7:36 pm whatsapp More From Our Partners Supermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org KCS-content AB Foods warned yesterday that the spiralling price of wheat, cotton, and other commodities means that shoppers could face price hikes on basic shopping basket goods.The firm, which has brands including twinings Tea, Kingsmill bread and Silver Spoon sugar, said customers had already seen some rises and more were looming. Cost increases have also hit corn, spices and oil, while rice is one of the few commodities to remain stable.AB Foods, which also owns high street retailer Primark, has said that despite steep cotton price increases it will ensure that the budget retailer remains cheaper than rivals. But it said of its grocery division in a statement yesterday: “Delays in securing these increases will adversely affect margins and the impact of continued rises in commodity costs will need to be carefully managed.” AB Foods also said the effect of severe British weather on sugar beet still to be processed will cut into its sugar profits this year, with analysts putting the likely hit as high as £20m.However, its 214-strong Primark discount fashion chain shrugged off the snow and cold weather to show overall like-for-like sales up 12 per cent over Christmas for the 16-week period to 8 January. Regardless, AB Foods admitted that profits will come under pressure from the rise in VAT.Meanwhile, the Kingsmill bread division grew its market share, helping overall sales rise seven per cent in the period. Grocery sales rose by nine per cent with beverages performing particularly well. Shore Capital analyst Darren Shirley said: “The stock may pause for breath for a period, however in the medium to long term we believe the strong cash flows, robust growth, international breadth and balanced portfolio remain an attractive investment proposition.” Tags: NULL Share AB Foods set to hike prices as costs surge last_img read more