AB Foods: announces profit growth in FY 2008

London / UK. (abf) Associated British Foods PLC (ABF) – owner of Allied Bakeries (Kingsmill, Burgen …) – has announced that it maintained strong financial performance in the last financial year, ended 13 September 2008 – despite a worsening economic situation and higher costs. The highlights:

  • Group revenue up 21 percent to 8,2 billion GBP
  • Adjusted operating profit up seven percent to 664 million GBP*
  • Adjusted profit before tax up three percent to 632 million GBP**
  • Adjusted earnings per share up four percent to 0,549 GBP**
  • Dividends per share up four percent to 0,2025 GBP
  • Net investment in capital expenditure and acquisitions of 710 million GBP
  • Net debt of 791 million GBP
  • Operating profit level at 554 million GBP, profit before tax up 4 percent to 527 million GBP and basic earnings per share down 3 percent to 0,452 GBP.

*: before amortisation of non-operating intangibles, profits less losses on the sale of PP&E and exceptional items.
**: before amortisation of non-operating intangibles, profits less losses on the sale of PP&E, profits less losses on the sale and closure of businesses and exceptional items.

George Weston, Chief Executive of Associated British Foods, said in a statement: «These good results demonstrate the resilience of the group. Consumer spending in many parts of the world has been under pressure for some months. Despite this, Grocery, Agriculture and Primark all delivered strong sales and profit growth. While faced with a general economic downturn, we remain committed to the group´s expansion and development, most notably in Sugar and Primark».

The group is the second largest sugar producer in the world with its British Sugar brand being the sole processor of the UK beet sugar crop. AB Agri sells animal feeds and micro-ingredients to farmers and purchases grain and oilseeds from them. The grocery business includes Twinings, Ovaltine, the Indian cuisine brand Patak´s, Ryvita and Jordans.

ABF´s Allied Bakeries is a leading bread supplier in the United Kingdom. Ingredients supplier AB Mauri has a global presence in bakers´ yeast, with significant market positions in the Americas, Europe and Asia, and is a technology leader in bakery ingredients. It operates from 43 plants in 28 countries. ABF Ingredients manufactures speciality proteins, enzymes, lipid technologies and polyols.

The retail division, Primark employs over 25’500 people at 181 stores in the UK, Ireland and Spain. The complete press release (PDF | 37 pages | 138 KB) is available under the headline «Associated British Foods PLC results for year ended 13 September 2008».

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