Annual profits from Associated British Foods' grocery business, which includes Kingsmill bread and Jordans cereal, fell 23%, the UK-based group said today (6 November).
Adjusted operating profit from the grocery arm, which also sells brands like Ryvita crispbread, dropped to GBP187m in the year to 15 September from GBP244m a year earlier.
ABF pointed to the cost of restructuring parts of its businesses in the UK and Australia. It also cited a "difficult retail and competitor environment" in Australia, where it sells products under brands including Tip Top.
Revenue from the grocery business was up 1% at GBP3.73bn.
Group adjusted operating profit increased 17% on the back of an 11% rise in revenue. ABF chief executive George Weston pointed to "exceptional performances" from its discount clothing chain Primark and its sugar arm.
Net profit rose from GBP577m a year earlier to GBP583m.
Chairman Charles Sinclair gave a cautious outlook for the year ahead. He said ABF expects profits from sugar to fall but for the decrease to be "more than offset" by growth at Primark and a recovery in earnings from grocery.
Shares in ABF were down 0.51% at 1,359p at 09:41 GMT.
