ABF hails 'exceptional' Ovaltine growth in developing markets
The UK-headquartered multinational food and ingredients firm grew revenues 11% to £5.766bn in the half year to March 3 2012, while adjusted operating profit was £412m (up from £390m in the half year to March 2011).
But H1 2012 adjusted operating profit in ABF's grocery business (£75m) was lower than H1 2011 (£109m), and although the firm said it benefited from the non-repeat of a rationalisation charge for the tea supply chain, grocery turnover fell from £1.813bn in 2011 to 1.743bn.
This was in large part due to margin erosion in ABF's UK bakery business.
ABF said it had upped its Twinings Ovaltine marketing investment again this year, particularly in UK advertising and promotion and in developing markets.
"The business in Thailand continued to trade during the recent heavy flooding, relying on inventive contingency planning to ensure our products reached consumers," it said.
