FDBusiness.com

ABF Makes Progress Despite Currency Headwinds

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

ABF Makes Progress Despite Currency Headwinds

ABF Makes Progress Despite Currency Headwinds
April 21
15:08 2016

Associated British Foods has reported progress in all its businesses Grocery, Sugar, Ingredients, Agriculture and Primark – for the 24 weeks ended 27 February 2016, despite adverse currency factors. Group revenue at £6.117 billion was down 2% but adjusted operating profit rose by 3% to £486 million. However, at constant currency, group revenues were 2% ahead and adjusted operating profit was 5% higher than the corresponding period in the previous year.

“These results demonstrate underlying progress for all of our businesses in the period despite currency,” says George Weston, chief executive of Associated British Foods. “Good buying and selling space expansion continued at Primark, cost reduction and performance improvements contributed to a better result at Sugar, profits were well ahead at Ingredients, and profit margins improved at Grocery and Agriculture.”

In Grocery, adjusted operating profit in the first half was 2% ahead of last year at £130 million on revenues that were 1% lower at £1.52 billion at constant currency and 4% lower at actual exchange rates. Margin improved from 8.1% to 8.6% continuing the progress of recent years.

Twinings Ovaltine achieved market share gains for tea in the UK, Italy, the US and Australia. The UK bakery market remains intensely competitive with retailers choosing bread as a means of highlighting their value for money to shoppers. Although average prices have been stable for the last six months, they remain at their lowest level for eight years. Kingsmill’s market share grew, with a substantial increase in sales volumes and strong consumer demand for alternative bakery products, especially Sandwich Thins. Bakery margins as a whole remain under pressure.

ABFIllovaSugarPlantRevenue from AB Sugar in the first half was 3% higher than last year at £843 million at constant currency and the operating result improved to £6 million from a loss of £3 million in the previous year. A tightening of EU and Chinese stock levels resulted in a strengthening of domestic prices in those markets, but world prices remain low. With most of British Sugar’s contracts for the current year already agreed, there will be no material impact on its profit from the improvement in pricing until next year.

First half revenue from the Ingredients division at £596 million was 4% ahead of last year at constant currency. Building on the improvement of the last two years, operating profit for the half year was substantially ahead to £40 million, with further recovery in yeast and bakery ingredients and another strong performance from ABF Ingredients.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements