Trading Statement

Associated British Foods PLC
26 February 2007

26 February 2007


                          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 3 March 2007, which are scheduled to be
announced on 24 April 2007.



The Chairman stated at the Annual General Meeting on 8 December 2006 that
adjusted operating profit in the current year was in line with our expectations
despite volatility in some commodity prices and fluctuations in currencies.
Progress was anticipated in adjusted earnings per share over the full year.  The
increase in adjusted operating profit would be more weighted towards the second
half.  This continues to be the case.



Good progress was made in operating profit, particularly in our sugar businesses
and in Primark.  The strength of sterling adversely affected the half year by
some £9m on the translation of our overseas results but this was partly
mitigated by the benefit of falling energy costs.  The investments in Primark
stores and Illovo have increased the group's net financing costs which, together
with the substantially increased minority interest arising from Illovo, will
impact adjusted earnings per share as previously guided.



Profits from our sugar businesses were strongly ahead of last year with the
strength of our overseas businesses more than offsetting the lower profit in the
UK.  The UK crop of 1.15 million tonnes will be sufficient to meet the
requirements of our sugar quota and biofuel production.  UK sugar prices have
stabilised but profit was lower as a result of the temporary quota cut and the
cost of the restructuring levy being in excess of reduced beet costs.  These
were mitigated in part by the additional quota acquired, a very efficient
campaign and lower energy costs.  Profit was higher in China, resulting from a
very large crop, and in Poland with an excellent campaign at the expanded
Glinojeck factory.  Illovo made a strong contribution benefiting year-on-year
from improved domestic sales and prices, operating cost reductions and a higher
world sugar price.



The European Commission has demonstrated its desire to manage the supply of
sugar in the EU in 2007/8 with its announcement of an advanced quota withdrawal
of 2.4 million tonnes.  Moreover the Commission is working to find a better
solution to the imbalance between supply and demand which will result from the
likely shortfall of quota renunciation.



Grocery profits were lower than last year, primarily as a result of a poor
performance by Allied Bakeries.  The competitive bread market in the UK delayed
the recovery of increased wheat prices last autumn and volumes were lower than
expected.  We have just implemented a major relaunch of the Kingsmill brand with
improved products and new packaging.  There will be strong marketing support
which will continue into the second half and we have increased bread prices.
ACH performed well and benefited from a continued strong contribution from
Capullo in Mexico.  Twinings and Ovaltine continued to deliver good sales
growth, particularly tea in the UK.  Although volumes at Silver Spoon were ahead
of expectations they were insufficient to offset the impact on profit from
pricing pressure.  Milling and baking in Australia achieved price increases to
recover higher wheat costs and major improvements have been made in the
operation of the new Sydney bakery.



Ingredients showed good progress.  Yeast sales in all of AB Mauri's markets
increased and there has been an encouraging improvement in profit in North
America.  Price increases have been implemented in many markets to recover
higher molasses and energy costs.  Further capacity increases are being
commissioned in the growth markets of South America and Asia.  Yeast extracts
and Proteins generated good growth but Enzyme profits were affected by higher
raw material costs.  We completed the sale of our commodity food polyols
business in the US this month and there will be a phased closure of the
manufacturing plant in Delaware.  We will recognise a loss on the disposal of
this business at the half year.



Sales and profit at Primark were substantially ahead of last year.  The
extensive store opening programme planned for the first half has been
successfully implemented.  23 new stores have opened and 5 smaller stores closed
to give 161 stores with 4.4 million sq ft of retail selling space.  We will open
a further 8 stores in the second half taking the total retail selling space to
4.7 million sq ft by the financial year end.  Primark has continued to trade
well.  Like-for-like sales were level with last year in the first half despite
the previously highlighted impact on existing stores of adding 1.5 million sq ft
of new space.  Our estimate for like-for-like sales growth in stores unaffected
by new openings is 4%.  Trading in the new stores has been encouraging.



During the half year we disposed of our Scandinavian food distributor as well as
the commodity food polyols business in the US.  Proceeds were £60m.







For further enquiries please contact:

Associated British Foods

John Bason, Finance Director                           Tel:   [phone]

Citigate Dewe Rogerson

Jonathan Clare, Chris Barrie, Fiona Bradshaw           Tel:   [phone]


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