On Tuesday, shares of Associated British Foods PLC jumped after the company reported a sharp increase in annual profit despite a large one-time charge emanating from issues at its operations in Germany.

Reportedly, annual statutory operating profit increased by 46 per cent to just under £1.18 billion. Total revenue surged by 43 per cent year-on-year to £7.7B.

The firm’s food unit also witnessed sales increase by 10 per cent at constant currencies, partly due to elevated sugar prices. However, the performance of Primark in continental Europe struggled, with sales weaker in the region. AB Foods cited soaring inflation as the reason.

Reportedly, group-wide income was also hurt by an exceptional expense of £206 million from a non-cash write-down of assets in Primark’s business in Germany.

Founded in 1935, Associated British Foods plc, better known as AB Foods, is a UK-based food processing and retailing company. Dublin-based Primark is its subsidiary. AB Foods is a significant producer of sugar, emulsifiers, enzymes, and lactose.