Trading Statement

Associated British Foods PLC
28 February 2005

28 February 2005


                          Associated British Foods plc

                        Pre Close Period Trading Update


Associated British Foods plc issues the following update prior to entering the
close period for its interim results to 5 March 2005, which are scheduled to be
announced on 19 April 2005.


The Chairman's statement at the Annual General Meeting on 10 December 2004 said
that trading in our established businesses in the early part of the year had
been satisfactorily ahead of the previous year and a positive contribution was
expected from the acquisitions made during the last financial year.  The
statement also commented that the company is set for further progress and this
continues to be the case, in line with our expectations at the beginning of the
financial year.


The main acquisitions in the last financial year were the international yeast,
bakery ingredients and US herbs and spices businesses from Burns Philp, the
premium canola oil brand, Capullo, in Mexico and the Billington's sugar business
in the UK.  Each of these businesses has performed in line with our
expectations.


In Grocery, Allied Bakeries in the UK benefited from growth in Kingsmill and
much improved operational efficiencies in its frozen bakery operation,
Speedibake.  In the US, the improvement in trading at ACH has continued and the
integration of the herbs and spices and consumer yeast businesses are well
advanced and expect to be complete by early summer.  There was a strong
contribution from Capullo in Mexico.  Underlying trading in Australia continued
to be adversely affected by competitor pressure in the bread market.  Twinings
and Ovaltine achieved good sales growth, especially in Asia for Ovaltine.


British Sugar in the UK has had a good campaign and the crop is forecast at
1.37m tonnes.  However, profit has been affected by the relative weakness of the
euro against last year and higher energy costs.  Profit benefited from the
introduction of the EU sugar regime in Poland, as expected, and higher volumes
in China.


At AB Mauri the new organisation is well established.  Although yeast pricing
has remained weak in North America and Turkey and higher molasses costs have
affected profits in a number of countries, the operations in South America and
Eastern Asia performed strongly. The integration of the bakery ingredients
businesses made good progress.


Primark has continued to trade well and like-for-like sales growth is expected
to be around 6%, similar to that achieved in the last full year.   Two new
stores were opened in the first half of the year, and one small store closed,
and extensions were completed in three stores.  The total number of stores is
now 121 with 2.4 million sq ft of selling space.  We recently announced the
acquisition of six new stores from the administrators of the Allders group, with
completion subject to landlord consent where required, and these will add 0.3
million sq ft of selling space and are expected to open in the autumn of this
year.


FRS 17 was adopted in the financial statements for the year ended 18 September
2004.  Notes 1 and 2 outline the restatement of the profit and loss account and
segmental analyses for the period ended 28 February 2004.



For further enquiries please contact:
Associated British Foods

John Bason, Finance Director                        Tel:   [phone]
Citigate Dewe Rogerson

Jonathan Clare, Chris Barrie, Sara Batchelor        Tel:   [phone]





NOTES

1)       FRS17 - Retirement Benefits was adopted in the financial statements for
the year ended 18 September 2004.   Adoption of this standard has the effect of
reducing the adjusted operating profit and adjusted profit before tax for the
period ended 28 February 2004 by £11m and £6m respectively.  Adjusted earnings
are reduced by £4m.

                                                                        24 weeks
                                                                           Ended
                                                                     28 February
                                                                            2004
                                                                              £m
Turnover of the group including its share of joint ventures                2,380
Less share of turnover of joint ventures                                     (8)
Group turnover                                                             2,372

Operating costs                                                          (2,187)
Group operating profit                                                       185

Share of operating results of  - joint ventures                                6
                                                - associates                   2
Total operating profit                                                       193


Operating profit before amortisation of goodwill                             213
Amortisation of goodwill                                                    (20)

Profits less losses on sale of fixed assets                                  (1)
Profits less losses on sale of businesses                                      8
Investment income                                                             24

Profit on ordinary activities before interest                                224

Interest payable                                                             10)
Other financial income                                                         5
Profit on ordinary activities before taxation                                219


Adjusted profit before taxation                                              232
Profits less losses on sale of fixed assets                                  (1)
Profits less losses on sale of businesses                                      8
Amortisation of goodwill                                                    (20)

Tax on profit on ordinary activities                                        (63)
Profit on ordinary activities after taxation                                 156

Minority interests - equity                                                    -
Profit for the financial period                                              156

Dividends                   - first interim                                 (41)
                            - second                                           -
interim
Transfer to reserves                                                         115


Basic and diluted earnings per ordinary share                              19.8p
Adjusted earnings per ordinary share                                       20.9p




2)   The composition of our geographic segments was revised in the financial
     statements for the year ended 18 September 2004 to reflect the increasingly
     international breadth of our businesses.  The impact of these changes on 
     the segmental results for the period ended 28 February 2004, together with 
     the impact of adopting FRS 17 as described in Note 1, are shown below:


                Analysis by geography


                        as previously reported                                               restated
                      sales  operating     capital                                   sales  operating    capital
                                profit    employed                                             profit   employed
                         £m         £m          £m                                      £m         £m         £m
European Union        1,496        161       1,478         United Kingdom            1,346        140      1,366
Australia & New         317         10         243         Rest of Europe              250         21        196
Zealand
North America           386         33         182         The Americas                386         33        184
Elsewhere               153          8         151         Australia, Asia & Rest      387         15        315
                                                           of World
Inter company sales    (18)          -           -         Inter company sales        (35)          -          -
Pension credit            -          8           -
                      2,334        220       2,054                                   2,334        209      2,061
Businesses                                                 Businesses disposed:
disposed:
European Union           20          -           -         United Kingdom               20          -          -
Australia & New          14          -           -         Rest of Europe                4          -          -
Zealand
North America             -          -           -         The Americas                  -          -          -
Elsewhere                 4          4           -         Australia, Asia & Rest       14          4          -
                                                           of World
Pension credit            -          -           -
                      2,372        224       2,054                                   2,372        213      2,061
Amortisation of           -       (20)           -         Amortisation of               -       (20)          -
goodwill                                                   goodwill
                      2,372        204       2,054                                   2,372        193      2,061


The impact of the adoption of FRS 17 on the segmental analysis by business is
shown below:

            Analysis by business

                        as previously reported                                               restated

                         operating         capital                                     operating         capital
                            profit        employed                                        profit        employed
                                £m              £m                                            £m              £m
Grocery                         71             740         Grocery                            70             740
Primary food &                  85             904         Primary food &                     83             906
agriculture                                                agriculture
Ingredients                     15             125         Ingredients                        15             127
Retail                          50             317         Retail                             50             317
Central                        (9)            (32)         Central                           (9)            (29)
Pension credit                   8               -
                               220           2,054                                           209           2,061
Businesses                                                 Businesses disposed:
disposed:
Grocery                          -               -         Grocery                             -               -
Primary food &                   4               -         Primary food &                      4               -
agriculture                                                agriculture
Packaging                        -               -         Packaging                           -               -
Pension credit                   -               -
                               224           2,054                                           213           2,061
Amortisation of               (20)               -         Amortisation of                  (20)               -
goodwill                                                   goodwill
                               204           2,054                                           193           2,061





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