Associated British Foods (ABF) – the owner of Twinings, Jordans, Kingsmill and Patak’s – has reported steady grocery sales in the second half of its financial year, with strength in international brands offset by ongoing weakness in Allied Bakeries.

The group confirmed Twinings delivered volume-led growth, supported by marketing and innovation, while Ovaltine sales rose on price increases and product expansion.

Allied Bakeries continued to face challenges, reporting lower sales and an operating loss.

ABF has announced a deal to acquire rival Hovis Group, subject to regulatory approval, in a move expected to deliver “significant cost synergies” and underpin long-term profitability in bread manufacturing.

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George Weston, Chief Executive of ABF, said: “This has been a busy period strategically, including the decision to close the Vivergo bioethanol plant, the restructuring of our Spanish sugar business, and an agreement for Allied Bakeries to acquire Hovis to create a financially sustainable UK bakeries business.”

ABF said grocery adjusted operating profit in H2 will be slightly below expectations due to one-off restructuring costs.

The group also recorded challenges across its wider food businesses:

• Ingredients: Sales were broadly flat, though profits were ahead of expectations thanks to growth in bakery ingredients and speciality enzymes.
• Sugar: Segment sales are set to fall around 10%, with losses driven by low European sugar prices, high beet costs and the closure of the Vivergo bioethanol plant. Restructuring in Spain will contribute to £200m in charges, partly offset by growth in Malawi and Eswatini.
• Agriculture: Sales are expected to rise around 1%, but operating profit will be significantly below last year due to weather-hit results at its Frontier joint venture and one-off costs.

ABF said full-year results remain on track, with the group due to publish annual figures for the 52 weeks to 13 September 2025 on 4 November.