FDBusiness.com

Sugar Drives Associated British Foods

 Breaking News
  • Dairy Crest to Invest £85 Million to Expand Cheese Business Dairy Crest, the leading British-owned dairy company, is investing £85 million in growing the capacity of its cheese business, £75 million of which will be invested at its Davidstow creamery in Cornwall. The investment will allow further growth of the company’s market-leading cheese brands Cathedral City and Davidstow, enhance whey production capacity and support farmers [...]...
  • Record Annual Sales and Capital Investment at Cranswick Driven by robust growth across all product categories – Fresh Pork, Convenience, Gourmet Products and Poultry – as well as a 30.2% increases in exports, Cranswick, the UK food group, has increased total revenue by 18% to a record £1.464.5 billion for the year ended 31 March 2018. Like-for-like revenue increased 13% over the prior [...]...
  • Challenging First Half For Greencore Group Greencore Group, a leading manufacturer of convenience food in the UK and US, has reported revenue of £1.239 billion for the 26 weeks ended 30 March 2018, up by 22.6% versus first half of 2017. Adjusted operating profit of £59.7 million was 8.0% higher than the corresponding period in 2017, primarily driven by the acquisition [...]...
  • Lurpak Combines Taste and Convenience For Launch of New Softest Arla Foods UK is to expand its spreadable product portfolio with the launch of Lurpak Softest, a new soft blend butter that is spreadable straight from the fridge. The UK’s number one butter brand has combined the great taste that Lurpak is renowned for with the softest, most spreadable butter ever*. With spreadability the most important [...]...
  • Scientific Study Shows Improved Fat Oxidation and Better Performance in Athletes When Using BENEO’s Palatinose™ A scientific study by Professor Daniel König[i] and his team at the Department of Sports and Sport Sciences of the University of Freiburg, Germany, has shown that with a pre-load of Palatinose™ endurance athletes “maintained a more stable blood glucose profile and higher fat oxidation, which resulted in improved cycling performance compared with maltodextrin.” The study used a [...]...

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

  • May 21, 2018London Int'l Wine Fair
  • May 22, 2018European Coffee Expo
  • June 1, 2018Gluten Free Expo Slovakia
  • June 3, 2018Vinoble
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements