ABF Revenue 3% Higher Than Previous Year as the Value of Dollars Rise

15 Jan 2015 --- Group revenue for the 16 weeks ended 2 January 2016 was 3% ahead of the same period last year at constant currency, and was 2% behind at actual exchange rates for the 16 weeks to 2 January 2016 summarizing the significant trading developments since the last market update.

Revenue in agriculture business was affected by lower sugar beet feed volumes and the continuation of lower commodity prices.

Ingredients has made further substantial profit progress this year, following last year’s strong performances at AB Mauri and our speciality ingredients businesses.

Grocery has made further margin progress. Twinings Ovaltine achieved strong sales growth in Australia and an improvement in Thailand. Trading at George Weston Foods in cwas much improved continuing the momentum of last year with a much better performance from the Don KRC meat business. Allied Bakeries achieved a substantial increase in sales volumes although pricing and margins remain challenging.

As expected, operating profit margin in the period was lower than last year, as a result of the stronger US dollar, but the margin reduction was lower than initially envisaged, partly as a result of a lower level of mark-downs.

In ABF's hard-pressed sugar business, sugar continued to make good progress with its performance, which is expected to yield further significant gains in the coming year.