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.
Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
- 2017: three major drivers of M&A strategy
- The food market in 2017 - consumer trends and M&A
- just-food 2017 Survey - your thoughts on growth
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Kellogg to slash 250 jobs
- Ferrero insists Nutella not pulled from shelves
- Lindt sees FY sales acceleration on Europe growth