Allied Bakeries put under strategic review by parent ABF

Allied Bakeries has been enactment up for strategical reappraisal successful what genitor institution Associated British Foods (ABF) called a “very challenging market”.

ABF made the revelation contiguous (29 April) arsenic it disclosed results for the 24 weeks to 1 March, with revenues and operating profits down for the radical arsenic a full and besides for the market part that houses Allied Bakeries.

While sugar, portion of ABF’s ingredients concern unit, weighed connected wide operating profit, Kingsmill and Sunblest marque proprietor Allied Bakeries pressured profits successful grocery.

“Our UK-focused businesses declined overall. As expected, this was chiefly owed to little volumes and income successful Allied Bakeries, which resulted successful an accrued operating loss,” ABF said successful the commentary.

“Allied Bakeries continues to look a precise challenging market. We are evaluating strategical options for Allied Bakeries against this backdrop and we expect to supply an update successful H2 2025.”

Allied Bakeries besides produces the Allinson’s marque but supplies UK retailers and supermarkets with private-label breadstuff products arsenic well.

ABF, which besides owns and operates the Primark covering stores, does not interruption down the fiscal show of Allied Bakeries oregon for different nutrient brands wrong market specified arsenic Twinings beverage and the Patak's and Blue Dragon sauces lines.

Group results showed a 2% diminution successful income to £9.51bn ($12.73bn) successful the play to 1 March, portion adjusted operating nett dropped 12% to £835m.

Profit earlier taxation fell 21% to £692m with an EPS alteration of 8% to 83.6 pence.

ABF’s shares were down much than 6% astatine 2,091 pence arsenic of 11:53 americium BST successful London today, eroding the year’s summation to 1.5%.

Post the results, Shore Capital has enactment ABF’s shares “under review” from a bargain standing for the concern firm’s location stock.

Consumer goods analysts Clive Black astatine Shore Capital wrote successful a probe enactment today: “Allied Bakeries remains an unwelcome occupation kid with much demonstrative speech astir solutions from management.

“As for market and ingredients, 1 oregon 2 frustrations aside, notably the long-running sore that is UK bakeries wherever strategical options are being examined, successful truth, wherever we judge that the concern has been earnestly seeking a amended medium-term outcome, ABF has a beardown portfolio of invaluable brands…”

In presumption of grocery, ABF’s income gross dropped 2% to £2.09bn. Operating nett was level astatine £219m, portion adjusted operating nett fell 1% to £227m.

ABF said it posted “good income growth” successful market “across astir of our brands” with the objection of Allied Bakeries and the cooking oils concern successful the US, which includes the Mazola brand.