UK food group ABF sees profits climb 16%

British food to clothing retailer Associated British Foods - the owner of Penneys - said today it was now a better balanced business after acquisitions helped profits rise by 16%.

The group, which is also a maker of brands such as Twinings, Ryvita and Kingsmill bread, said its drive to create four divisions of equal strength had reduced its reliance on sugar production.

AB Foods reported profits in line with market expectations for the 24 weeks to March 5, up 16% to £268m (€392m).