Blog: What are the prospects for ABF's grocery business?
Dean Best | 22 November 2010
Is Associated British Foods' grocery business the "sick child" of the company's empire? One analyst thinks so.
Andrew Wood, an analyst at Sanford Bernstein, described ABF's grocery division as such in the wake of the company's annual results earlier this month.
Underlying profits from ABF's grocery arm, which includes brands like Patak's cooking sauces, Kingsmill bread and Mazola cooking oil, were up 20%. Sales increased 7%, although on a constant-currency basis, revenue was from the division was flat.
However, Wood said he still believed the grocery division would be a "low-growth, low-margin" business and is the "sick child" of a business that includes food ingredients, sugar and discount retail chain Primark.
Wood's comments came a day after ABF published its numbers. On the day the figures were announced, just-food spoke to ABF finance director John Bason, who has been at the business for over a decade and seen a raft of changes within its grocery division.
In the interview, published in full today (22 November), Bason said he was "really pleased" with the results from grocery, a business that he said had gone through "a lot of restructuring".
The spectre of rising raw-material costs remains a concern, which Bason acknowledged but he was optimistic about the prospects for the ABF's grocery division and said the group is lining up investment in the UK and overseas, including its latest relaunch here - that of ethnic cuisine brand Blue Dragon.
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
Low food prices continue to hold back inflation rates in the UK as the supermarket price war continues in the face of rising import costs. ...
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- Why Danone is withdrawing Dumex from Vietnam
- Why May's Brexit comments give reason for optimism
- 2 Sisters chief Boparan buys Bernard Matthews
- Fonterra says value-added strategy paying off
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Global Food and Drinks Closures: Performance and Opportunities
- Fast Food Restaurants in the US - Industry Market Research Report