AB Foods Profits Up 8 Pct To GBP720 Million
AB Foods today reported an adjusted operating profit of GBP720 million, an increase of 8% on a year ago, with group revenue up 12% to GBP9.3 billion.
The sugar side saw revenue up 24.3% to GBP1.575 billion, with an adjusted operating profit of GBP189 million (an increase of 23.5%), aided by "a sharp recovery in profit at British Sugar UK."
I'll give it ten minutes before we hear the NFU using that one against them when it comes to the price being paid for beet for 2009/10.
They said that the "construction of Vivergo’s wheat bioethanol plant is progressing well at Hull in the UK, with commissioning now planned for autumn 2010. All major plant items have now been received and installation is well underway. Contracts have been signed with AB Agri to supply wheat from Frontier and for the sale of the distillers’ grain co-products."
A nice level playing field there then.
The agriculture side chipped in with revenue of GBP1.004 billion, up 16%, and an adjusted operating profit of GBP34 million, an increase of 3%. Saying that "AB Agri had another very strong year continuing to perform well above expectations." In addition Frontier "produced exceptional results having anticipated the correction in the value of the global grain markets." And that KW Trident had "significantly increased its presence in the UK blends market."
Bespoke ladies and gentleman's outfitter Primark reported revenue up 20% to GBP2.314 billion, with an adjusted operating profit of GBP252 million, up 8%.
In addition to that, grocery reported revenue of GBP3.188 billion (up 13%), but an adjusted operating profit down slightly to GBP191 million. Ingredients weighed in with sales of GBP989 million, up 20%, and an adjusted operating profit of GBP88 million, up 13%.
It's nice to see the little man doing well isn't it?
Mind you the news isn't everyone's cup of tea, despite the profits there are 400 jobs going at ABF-owned Twinning's. They obviously didn't anticipate the correction in the value of the global premium tea market: here
ABN Announces Purchase Of Flixborough Feed Mill, Mulls Invasion Of Poland
ABN have announced the acquisition of the Flixborough feed mill from JE Porter, pending regulatory approval from the UK competition authorities.
"We decided to purchase the Flixborough mill primarily because I don't think we've got a mill in a place with an X in it," said nobody to do with anything.
"Does anyone know if there a feed mill in Ashby de la Zouch, so then we would have a full set?" they didn't add.
"After that we might move onto punctuation marks like Westward Ho! If there isn't a mill there already then it might be a good idea to build one fast."
"We aren't expecting any trouble from the competition authorities as I think we own them already," the voices inside my head concluded.
Nobody was available to comment on totally unsubstantiated reports that the group were next considering an invasion of Poland, converting Buckingham Palace into a giant drive-through Primark or launching a hostile takeover of Alistair Darling's eyebrows.
ABF Comments On AB Agri's Contribution To FY Results
The following is an extract from ABF's FY ended 13th Sept 2008 annual results statement:
AB Agri, our agriculture business, had a very strong year during which the combination of its trading skills, market knowledge and customer relationships enabled it to outperform a market characterised by extremely volatile raw material prices.
European grain prices doubled during the first half of the year and low grain stocks worldwide, unpredicted weather events and heavy trading in the commodity markets resulted in unprecedented levels of daily price volatility. Stronger feed prices were sufficient to offset higher raw material and energy costs, lower volumes of molassed sugar beet feed and increased production costs in our ruminant feeds business.
Frontier is our grain supply joint venture. It has a strong balance sheet, access to working capital and superior market knowledge which differentiate it from its competitors. Through its leading market position, unique centralised operating structure and national trading system, it was ideally placed to manage the extreme price volatility during the year on behalf of its grain customers and farmer suppliers. Moreover, higher cereal and oilseed prices encouraged an increase in UK sowings resulting in a more buoyant market for Frontier’s fertilisers, seed varieties and crop protection products. As expected, the business has now concluded an agreement to supply Vivergo with over one million tonnes of feed wheat for its bioethanol facility.
We are establishing an increasingly international presence in the high technology, high added-value feeds market which specialises in micro-feed ingredients that enhance nutrient absorption and provide a better return for farmers. Sales of feed enzymes by AB Vista were particularly buoyant with several new products launched and a doubling of the number of countries served over the last two years. New sales offices in the US, Mexico, India and China were established during the year.
Our feeds business in China was relatively untouched by the widely reported natural disasters that occurred there. We achieved strong sales growth in each of the species markets that we supply. Our mill building programme is continuing and on completion will deliver a 20% increase in production capacity.
AB Agri is taking a central role in a number of schemes to promote sustainable agricultural practice. The first Carbon Trust accredited, greenhouse gas reduction model for dairy farms was launched to Sainsbury’s dairy suppliers and our WildCare scheme on biodiversity, which we operate in conjunction with Waitrose, was awarded the Green Apple Award for “Environmental Best Practice”.
John Thompson purchase of AB Agri, Knockmore approved by OFT
It was announced back in April that John Thompson and Sons Ltd, the Belfast based feed millers, had announced that it had agreed to purchase the feed-milling business of AB Agri Ltd at Knockmore, Lisburn, pending regulatory approval.
An announcement on the Office of Fair Trading website confirms that approval has been passed and that the full text of the decision will be available shortly.
Link
John Thompson and Sons to Acquire AB Agri Ltd's Knockmore Operation
John Thompson and Sons Ltd, the Belfast based feed millers, has today announced that it has agreed to purchase the feed-milling business of AB Agri Ltd at Knockmore, Lisburn, pending regulatory approval.
The acquisition will enhance Thompson’s competitiveness in an increasingly pressurised all-Ireland market, the company said in a statement. The combined operations will meet a wider set of customer needs through their offering of high value feeds, tailored blends, alternative feeds and a range of on-farm solutions that will encompass nutritional and technical support, the statement went on.
Thompson plan to operate the Knockmore plant in its present form. The company has already invested over £2m in state of the art blending and packing equipment at its Belfast facility and the acquisition of AB Agri’s compound business further underlines Thompson’s commitment to provide a world class, modern and efficient service to farmers in the North of Ireland, they say.
