ABF revenue down, but Allied Bakeries stays strong

first_imgAssociated British Foods, the group behind Kingsmill, has announced that group revenue is down 2% to £6.2bn in the 24 weeks to 1 March, due to food commodity deflation.It revealed in its interim report that revenue in its food business was lower than last year, with sugar prices being a major cause. However, Allied Bakeries made progress in the UK bread market, with volumes and margins both ahead of last year.The Kingsmill 50/50 range continued to be the main stimulus of growth, while the smaller Allinson brand also made “significant gains”. Both brands had received television advertising support during the period.A new bread plant was commissioned at West Bromwich as the company approached the end of a major capital investment programme in its UK bakeries. The programme aims to deliver less waste, better control of processes, consistently high-quality bread and lower energy usage.The report also revealed that adjusted operating profit was up 1% at £497m, adjusted profit before tax was up 4% at £468m and adjusted earnings per share were up 10% at 45.8p.Shares liftedMeanwhile, dividend per share was up 4% to 9.7p, net debt was £827m after net capital investment of £328m and operating profit rose 2% to £463m. Profit before tax was up 6% at £434m and basic earnings per share were up 12% to 43.2p.George Weston, chief executive of Associated British Foods, said: “The group as a whole has delivered a very resilient operational and financial result at a challenging time of transition for our European sugar business.“I am pleased to report interim results for the group that deliver adjusted earnings growth of 10% in the face of a strengthening of sterling and much lower sugar prices.”last_img

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