Falling pound sterling and sugar price surge boost Primark parent AB Foods

Investors in Associated British Foods took treble cheer earlier as it said better profits from sugar, a boost from the falling pound and further growth at Primark meant profits will be better than expected.

Shares rose 195p, or 8%, to 2748p as analysts shifted their forecasts from a small fall in earnings this year to flat or even a modest rise.

ABF said revenues grew by 7% in the third-quarter — up from 1% in the first half — with sugar the outstanding performer.

Lower EU stocks and rising world sugar prices have helped but will benefit British Sugar — which is owned by ABF — far more this year than next.

Finance director John Bason said the business — “the most efficient in Europe” — was unlikely to be affected by Brexit because EU sugar quotas were already coming to an end.

But he added that he would press for support for UK beet farmers if Brexit were to pose any threat.