ABF: Weak pound helps to revenue surge

London / UK. (abf) Associated British Foods PLC (ABF) said in an interim statement for the 40 weeks ended 20 June, that the group revenue for the 40 weeks to 20 June 2009 was 19 percent ahead of the same period last year after allowing for the exit from US commodity oils and the establishment of the Stratas joint venture. The weakness of sterling continued to benefit the translation of group revenues which were ahead eight percent at constant currency. The food businesses also benefited from the flow-through of price increases, most of which were achieved in the first half of last year, and some volume growth. There was continued strong trading from Primark. Group revenue unadjusted for the impact of disposals was up 14 percent year to date. Volumes at Allied Bakeries in the UK were impacted by the loss of low margin own-label and some branded business. However, profit was ahead in the quarter as margins increased with further improvement in the baking operations. Twinings Ovaltine continued in line with expectation particularly Ovaltine in Thailand and its developing markets. Everyday tea continued to see strong consumer demand but speciality teas and infusions in the UK experienced some reduction. Sugar pricing remained competitive in the UK retail market and Silver Spoon´s margins remained below last year´s level. The transfer of sugar packing from Newark to an expanded facility at Bury is on schedule to be completed in October. Trading remained difficult for Westmill Foods in the UK ethnic wholesale sector, although the rate of decline has slowed from earlier this year. Patak´s and Blue Dragon delivered double digit revenue growth although margins continued to be impacted by the higher cost of imports.