Milling & Baking News - January 10, 2012 - 26

Stock Market Review 

Foreign grain-based foods performance slightly weaker in 2011
lthough share price performance for grain-based foods companies outside of North America was mostly mixed during 2011, performance has been worsening steadily over the past three years. Of the 38 companies tracked by Milling & Baking News, 17 recorded year-over-year increases in share price while 21 posted decreases. By comparison, 16 companies posted year-over-year declines in 2010 and only 7 companies posted declines in 2009.

On the London Stock Exchange, Associated British Foods ﬁnished the year at 1107p, down 4% from 1156p in 2010. Operating proﬁt during the year rose 3% to £842 million, and for the ﬁrst time total sales exceeded £11 billion. The company achieved revenue growth in each of its business segments, including a record year for AB Agri. Carr’s Milling Industries P.L.C. closed at 790p, up 30% from 609p in 2010. Chairman Richard Inglewood said the company’s food business remains focused on cost control to mitigate the negative impact on sales growth and margins from the continued excess capacity in the ﬂour milling industry. Tate & Lyle P.L.C., the global sweetener company, had a 52-week low of 449.5p, but ultimately ended the year up 36%, closing at 708.5p. During the year, Tate & Lyle restarted production of Splenda sucralose at a facility in McIntosh, Ala., and signed an exclusive, worldwide license agreement to commercialize Soda-Lo, a salt reduction technology from Eminate Ltd., a subsidiary of The University of Nottingham in the United Kingdom. SodaLo enables salt reduction of up to 30% in such applications as bread, pizza bases, pastries, savory pie ﬁllings, cheese and baked snacks, according to Tate & Lyle. Premier Foods, the U.K.’s largest food producer, ﬁnished
26 / January 10, 2012 Milling & Baking News

and follows the announcement on Dec. 8 of its intention to sell its chilled food division, Brookes Avana, to the 2 Sisters Food Group for €30 million. Northern Foods P.L.C. was delisted from the London Stock Exchange in 2011 after the company was acquired by Boparan Holdings. The acquisition of Northern Foods increased Boparan’s sales to more than £2 billion, and has transformed the group into one of the biggest players within the British convenience foods Foreign stocks, 2011 share market. Finsbury Food Group price performance P.L.C., a U.K.-based maker of cake, bread and glutenMarks & Spencer United Kingdom -16% free bakery goods, ﬁnished Premier Foods United Kingdom -70% 2011 at 27.45p, up 17% from Gregg’s P.L.C. United Kingdom 9% 23.50p in 2010. Tesco United Kingdom -5% Greggs P.L.C., an operator of Associated British Foods United Kingdom -4% retail bakery shops and cafes in Tate & Lyle P.L.C. United Kingdom 36% the United Kingdom, ﬁnished Carr’s Milling United Kingdom 30% 2011 at 506p, up 9% from Sainsbury P.L.C. United Kingdom -16% 465p in 2010. During 2011, the Finsbury Food Group P.L.C. United Kingdom 17% company’s new £4.5 million Kerry Group Ireland 13% specialist confectionery bakGreencore Group Ireland -50% ery in Penrith became fully Origin Enterprises Ireland -5% operational, while its £16.5 Agrium Inc. Canada -27% million bakery in Newcastle GrainCorp Ltd. Australia 19% upon Tyne commenced Goodman Fielder Ltd. Australia -67% production. First Baking Co. Japan -12% All three of the leading Nisshin Seifun Japan -8% U.K. retail chains sustained Nissin Foods Holdings Japan 6% share price declines in the Nippon Flour Mills Co. Ltd. Japan -13% past year. Tesco, the leader in Yamazaki Baking Japan 5% U.K. food retailing, closed at Indofood Indonesia -4% 404p, down from 425p a year Flour Mills of Nigeria Africa -3% earlier. Marks & Spencer, Danone France 5% meanwhile, finished the Ahold n.v. The Netherlands 5% year at 311p, down 16% CSM The Netherlands -53% from 369p. Sainsbury, P.L.C., DSM The Netherlands -16% which posted year-overUnilever The Netherlands 12% year gains between 2010 Nestle S.A. Switzerland -8% and 2009, finished the year at 302.9p, down 16% from Aryzta AG Switzerland 5% 376.3p in 2010. Alexandria Flour Egypt -33% In Ireland, Greencore East Delta Flour Co. Egypt 11% Group P.L.C., a European Middle Egypt Flour Egypt -33% maker of convenience food Middle and West Delta Flour Co. Egypt 13% and malt products, ﬁnished North Cairo Flour Egypt -11% at €0.63, down 50% from the South Cairo & Giza Flour Mills Egypt -28% 2010 close of €1.27. Greencore Egyptian Starch Egypt -53% substantially strengthened its Upper Egypt Flour Egypt 0% position in chilled convenience Ebro Puleva S.A. Spain -7% foods in its chosen markets Tiger Brands Ltd. South Africa 35% of the United Kingdom and Quinenco Chile -21% the United States during the Molinos Rio Plata Argentina 8% ﬁnancial year through the 2011 at 5.81p, down 70% from 19.28p, in 2010. In December, Premier Foods signed an agreement with The Boyne Valley Group to sell its four Irish Brands comprising Chivers, Gateaux, McDonnells and the Erin license (“the Irish Brands”) for a gross cash consideration of €41.4 million. The agreement represents a further step in the group’s strategy to focus investment behind its core brands
bakingbusiness.com / world-grain.com

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Milling & Baking News - January 10, 2012

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