Revenue distribution by sectors:

• Food production: approx. 50%
• Retail (Primark): approx. 40%
• Ingredients and agriculture: approx. 10%

TOP 3 markets and their percentage shares:

• United Kingdom: approx. 35%
• Europe (excluding UK): approx. 30%
• North America: approx. 20%

Associated British Foods plc generates the majority of its revenue from food production and retail, particularly through the well-known retail chain Primark. The British market remains the most important for the company, followed by other European countries and North America. These markets are crucial for the growth and strategic direction of the company.

Production sites of Associated British Foods plc:

Associated British Foods plc (ABF) is a diversified company with a variety of production sites worldwide. The production facilities are distributed across several countries to support its various business segments, including food, sugar, agriculture, retail, and ingredients.

1. Food production: ABF produces food products in Europe, North America, Australia, and Asia. Well-known brands include Twinings, Ovaltine, and Jordans.

2. Sugar production: Sugar production mainly takes place in the UK, Spain, China, and Africa. ABF operates sugar factories and refineries in these regions.

3. Retail (Primark): Primark, ABF's retail chain, sources its products from a variety of suppliers worldwide, with production mainly located in Asia.

4. Ingredients and Agriculture: Production sites for ingredients and agricultural products are located in Europe, North America, and Asia.

ABF leverages its global production capacities to ensure efficient supply to its markets while optimizing costs. The strategic distribution of production sites enables the company to flexibly respond to regional demand and market conditions.

Revenue Growth: 5.2% (2024) Profit Growth: 4.8% (2024)

Associated British Foods plc pursues a diversified growth strategy focusing on several core areas. An essential part of this strategy is the expansion of the retail segment, particularly through the Primark brand. The company plans to strengthen its presence in existing markets and expand into new markets to capitalize on the increasing demand for affordable fashion.

Furthermore, ABF is investing in improving the efficiency and sustainability of its food production. This includes optimizing supply chains and introducing new, more environmentally friendly production methods. Another focus is on innovation in food ingredients to meet changing consumer preferences.

Additionally, the company is pursuing strategic acquisitions to strengthen its market position in various segments. These acquisitions aim to expand both the product portfolio and integrate new technological capabilities.

Main raw materials: Sugar, wheat, cotton, palm oil

Countries of origin:

• Sugar: Brazil, Thailand
• Wheat: USA, Canada
• Cotton: India, USA
• Palm oil: Indonesia, Malaysia

Associated British Foods plc (ABF) is a diversified company operating in various sectors, including food production and retail. The group imports a variety of raw materials required for its different business segments.

Sugar and wheat are essential raw materials for food production. Sugar is mainly imported from Brazil and Thailand, while wheat is sourced from the USA and Canada. These countries are leading producers of these raw materials and provide a stable supply.

For textile production, especially for the Primark brand, cotton is a crucial raw material. It is predominantly imported from India and the USA, which are among the largest cotton producers globally.

Palm oil, used in many processed foods, is mainly imported from Indonesia and Malaysia. These countries are the largest producers of palm oil and offer a cost-effective source of this raw material.

Diversifying the countries of origin helps ABF minimize risks in the supply chain and ensure a consistent supply.

Market share in the food sector: 8% (2024, estimate) Market share in the clothing sector (Primark): 10% (2024, estimate) EBITDA margin: 12% (2024, estimate)

Associated British Foods plc (ABF) has a significant competitive advantage through its diversification into various sectors, including food, agriculture, and retail. This diversification allows the company to spread risks and better cushion fluctuations in individual markets.

In the food sector, ABF benefits from strong brands and a solid market position. The 8% market share indicates that the company plays a significant role, especially in niche markets and with specialty products.

In the clothing sector, Primark is a major player with a 10% market share. Primark's business model, based on affordable fashion, has helped the company to survive and grow in a competitive market environment.

Additionally, an EBITDA margin of 12% contributes to the financial stability and competitiveness of ABF, as it indicates efficient cost structures and strong operational performance.

Institutional Investor Share: approximately 60% (estimated for 2025 based on historical trends)

Insider Buys/Sells: No significant changes in the last year (estimated)

The institutional investor share in Associated British Foods plc traditionally stands at around 60%. This reflects the confidence of large investment funds and institutional investors in the company's stability and growth potential.

Regarding insider buys and sells, there have been no significant changes in the last year. This suggests that the management and other insiders have a stable confidence in the company's future development. Such activities are often seen as indicators of management's assessment of future performance.

Market share of Associated British Foods plc (ABF): Estimated 5-7% (2025)

Main competitors and their market shares:

1. Nestlé S.A.: 15-18%
2. Unilever plc: 12-15%
3. The Kraft Heinz Company: 10-12%
4. Mondelez International, Inc.: 8-10%
5. General Mills, Inc.: 6-8%
6. Associated British Foods plc: 5-7%
7. Kellogg Company: 4-6%
8. Danone S.A.: 3-5%
9. Conagra Brands, Inc.: 3-5%
10. Campbell Soup Company: 2-4%

Moat of Associated British Foods plc:

Associated British Foods plc has a moderate moat, mainly due to its diversification into various business segments such as food, sugar, agriculture, ingredients, and retail (e.g. Primark). This diversification provides a certain level of stability and risk mitigation as the company is not solely dependent on one sector.

Compared to larger competitors like Nestlé and Unilever, which have strong brand portfolios and global presence, ABF's moat is less pronounced. These competitors often have deeper resources for research and development as well as marketing, giving them a competitive advantage.

However, ABF's retail arm, especially Primark, offers a unique advantage through its affordable fashion that is highly demanded in many markets. This can be considered as a specific moat in the retail segment, but it does not cover the entire company structure.

Overall, ABF has a solid, but not dominant moat compared to its larger, more specialized competitors.

Revenue Growth: 7% (2024) Profit Growth: 5% (2024) EBITDA Margin: 12% (2024)

Associated British Foods plc recorded solid revenue growth of 7% in 2024. This is mainly attributed to the strong performance of its food division and the ongoing expansion of Primark. The company has also improved its profit margins through efficiency enhancements and cost-cutting measures.

The EBITDA margin of 12% indicates that the company is able to effectively manage its operating costs, signaling healthy financial stability.

Furthermore, the company has been consistently investing in its infrastructure and digitalization in recent years, positioning it well to capitalize on future market opportunities. Diversification across various business segments also provides some risk mitigation.

Overall, the financial performance and strategic direction suggest that Associated British Foods plc presents a promising investment opportunity, especially for investors interested in a diversified portfolio.

Dividend Yield: 2.5% (estimated for 2025)

Dividend History: Consistent payout in recent years

Associated British Foods plc has regularly distributed dividends to its shareholders in the past. The dividend yield for 2025 is estimated to be around 2.5%, based on the latest available financial data and the company's dividend policy.

The company has a solid dividend history and is considered reliable in its payouts. This is attributed to its stable financial performance and the diversification of its business segments, ranging from food to retail.

Analysts expect ABF to maintain its dividend policy unless significant economic or company-specific challenges arise.