Associated British Foods has today published its trading update for the sixteen weeks to 4 January 2025, summarising the most significant trading developments since the last market update.
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In the grocery segment, revenue grew 1%, driven by strong performances from international brands such as Twinings and Ovaltine. Twinings in particular saw volumes increase thanks to marketing investments and in-store visibility, while Ovaltine enjoyed strong growth in China and Africa, offsetting a decline in powder sales in Thailand. The balsamic vinegar business also performed well in Europe and the United States. However, brands focused on the United Kingdom suffered from a decline in sales, while the Australian and New Zealand markets showed signs of recovery thanks to new acquisitions.
Ingredients revenues grew 4%, driven by strong growth in the yeast and bakery businesses, especially in Latin America. The specialized enzymes, health and nutrition businesses performed well, while the pharmaceutical segment showed a weaker performance.
In sugar, sales fell 2%, with good growth in Africa (especially Zambia and Malawi) offset by lower prices in Europe. Production in South Africa was hampered by drought, while lower prices in the UK and Spain reduced revenues.
Finally, in the agriculture segment, revenue fell by 4%. Specialty feed and additive products performed well, but weak demand and low raw material prices penalized the feed market in the UK and China.
