Blog: Why there is uncertainty around ABF
Dean Best | 17 January 2008
Questions still hang over Associated British Foods, despite shares in the UK company rising after a trading update this morning (17 January).
And those questions remain in food.
The market was cheered after ABF reported strong sales growth from its clothing retail arm Primark, which has been one of the growth engine’s of the business in recent months.
Nevertheless, uncertainty remains around ABF’s food and ingredients business. The company warned that EU sugar reform and higher energy costs would lead to lower profits from its UK sugar business this year. Costs, meanwhile, have also hit ABF's margins in the US,
And there is some reservation about ABF’s bakery business, which in recent months has concerned investors.
Today, the Kingsmill baker, though vague on detail, said its bread arm was seeing “improvement”.
But whether that stops speculation surrounding ABF’s future in baking – the industry where the company began back in the 1930s – is an open question.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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