FDBusiness.com

Sugar Drives Associated British Foods

 Breaking News
  • PepsiCo Targets African Growth in $1.7 Billion Deal PepsiCo has agreed to acquire all the outstanding shares of Pioneer Foods Group of South Africa for approximately US$1.7 billion. Pioneer Foods has a robust, locally relevant product portfolio that complements PepsiCo’s current line-up, with strong positions in cereals, juices, and other African nutritional food staples, including well-known, scaled brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, [...]...
  • WHO/Europe Studies Find Baby Foods are High in Sugar and Inappropriately Marketed For Babies Two new studies from WHO/Europe show that a high proportion of baby foods are incorrectly marketed as suitable for infants under the age of 6 months, and that many of those foods contain inappropriately high levels of sugar. WHO’s long-standing recommendation states that children should be breastfed, exclusively, for the first 6 months. Its 2016 [...]...
  • AB World Foods Selects e.fundamentals to Help Drive Online Sales AB World Foods, the ethnic foods division of Associated British Foods, has selected ecommerce analytics provider e.fundamentals to help drive sales of its products through retailers’ websites. AB World Foods, whose brands include Patak’s, Blue Dragon, Levi Roots and Tabasco, has become a client of e.fundamentals’ retail service, which continuously reports how brands are performing [...]...
  • AxFlow Holding Acquires Induchem Group in Ireland AxFlow Holding, the international fluid handling group that is active in all European markets, South Africa, Australia, and New Zealand, has acquired the Irish Induchem Group, the specialist provider of fluid handling solutions, which predominately focuses on valves, pipe solutions, mixers and pneumatics. Headquartered in Cork, the Induchem Group has four sites, located in Ireland and [...]...
  • AB InBev to Sell Australian Business For US$11.3 Billion to Asahi Group Anheuser-Busch InBev has agreed to divest Carlton & United Breweries (CUB), its Australian subsidiary, to Asahi Group Holdings for Au$16.0 billion, (US$11.3 billion) in enterprise value. The transaction represents an implied multiple of 14.9x 2018 normalised EBITDA. As part of this transaction, AB InBev will grant Asahi Group Holdings rights to commercialise the portfolio of AB [...]...

Sugar Drives Associated British Foods

Sugar Drives Associated British Foods
April 25
11:45 2012

Buoyed by strong performances from its sugar business and its Primark retail arm, Associated British Foods has reported a 3% rise in profit before tax to £329 million on group revenue up 11% to £5.77 billion for the 24 weeks ended March 3rd 2012. AB Sugar increased revenue by 17% to £1.2 billion and operating profit by 59% to £172 million over the previous year. This was driven by a strong increase in the UK, further improvement in Spain and a better performance from Illovo.

In the UK, sugar production for the full year is expected to be 1.3 million tonnes, compared to just under 1.0 million tonnes last year which fell short of sales quota. British Sugar’s interim profit was well ahead of last year reflecting an excellent sugar beet campaign, strong factory performance and higher EU prices.

ABF’s grocery revenue increased by 4% to £1.81 billion but operating profit fell by 31% to £75 million, primarily due to restructuring costs at George Weston Foods in Australia and Allied Bakeries in the UK, margin declines at Allied Bakeries and higher than expected costs of operating the Castlemaine meat factory in Australia.

Allied Bakeries is continuing to roll out the largest capital development programme within the UK bakery industry to improve manufacturing efficiency and upgrade product quality. Construction of the new bread plant and bulk handling at the Stockport bakery is well under way and due to begin commissioning in June. A rationalisation charge has been taken for the closure of two smaller bakeries and the cost of further overhead reduction.

Ingredients revenue increased by 2% to £538 million during the first half but operating profit declined by 42% to £18 million as the challenges experienced by the yeast and bakery ingredients business, seen particularly in the second half of last year, continued. Operating profit was adversely affected in a number of regions by input cost pressures, increased competition and volume weakness. The performance in Europe was adversely affected by increased competition which has made price increases to recover higher input costs difficult to achieve. Bakery ingredients in Spain continued to grow and commissioning of a new plant in Cordoba is expected at the end of the financial year. A rationalisation charge has been taken for a reduction in overhead in the European region.

Primark achieved strong first half revenue growth of 15% to reach sales of £1.62 billion but operating profit rose by a more modest 2% to £154 million.

Looking ahead to the second half of the year, AB Sugar’s investment over recent years, its focus on maximising capacity utilisation and operational efficiency and the strength of regional sugar prices, are expected to drive the full year profit for sugar well ahead of last year. This, together with solid profit growth from Primark in the second half, is expected to more than offset the lower profit in grocery and ingredients.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements