Allied bakeries have conducted a strategic review in the British Foods (ABF) associated with the parent company called a "very challenging market".
ABF made an inspiration today (April 29) as it disclosed the results from March 1 to March 1, and the revenue and operating profits of the entire group fell, and it is also the grocery department where the grocery store is located, which has Allied bakeries.
While Sugar, a part of the ABF Ingredients business unit, enjoyed the trade-off of overall operating profits, Kingsmill and the tanned brand owner Allied Bakeries impose huge profits in the grocery store.
"Our UK-centric businesses generally declined. As expected, this was mainly due to lower sales and sales at Allied bakeries, which resulted in increased operating losses."
“Alliance bakeries continue to face a very challenging market. We are evaluating the strategic choices of Allied bakeries and we hope to provide updates in H2 2025.”
Allied Bakeries also produces the Allinson brand, but also offers private label bread products for UK retailers and supermarkets.
ABF also owns and operates Primark clothing stores, which does not break down the financial performance of the Allied Bakery or other food brands in the grocery store, such as the Twinings Tea, Patak's and Blue Dragon Sauces ranges.
The team's results showed sales fell 2% to £9.51 billion ($12.73 billion) to March 1, while adjusted operating profit fell 12% to £835 million.
Profits before tax fell 21% to £692 million, while earnings per share fell 8% to 83.6p.
As of 11:53 am today, ABF stocks fell more than 6% to 2,091 pence, weakening earnings for the year to 1.5%.
After the results, Shore Capital has "reviewed" ABF's stock from the buy rating of investment companies' home stocks.
"Alliance bakeries remain an unpopular problem child with more exemplary discussions on management's solutions, Shore Capital's consumer goods analyst Clive Black wrote in a research note today.
“As for grocery stores and ingredients, apart from a frustration or two, especially the long-running British bakeries, where strategic options are being studied, in fact, we believe the business has been seriously seeking better mid-term results, with ABF having a strong portfolio of powerful valuable brands…”
As far as grocery stores are concerned, ABF's sales revenue fell 2% to £20.9 billion. Operating profit remained flat at £219 million, while adjusted operating profit fell 1% to £227 million.
ABF said its grocery “selling good growth” in addition to Allied Bakeries and Allied Bakeries and Coveiloil Business, including the Mazola brand.
"These results reflect the performance of four of our five divisions. I'm frustrated with the results of our sugar-making business, but we're well aware of what needs to be done to improve financial performance through operational and regulatory solutions."
“Looking forward, the Group remains in good shape in an operating environment with serious uncertainty, and our strong balance sheet enables continued investment to achieve sustainable long-term growth.”
"We continue to expect overall performance this year to reflect the normalization of profitability of our U.S.-centric businesses and the operating losses of allied bakeries," ABF added in the results comment.
"All-Armed Bakery After Strategic Review by Parents ABF" was originally created and published by global equity brand Just Food.
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