Trading Update

Associated British Foods PLC
13 September 2004

13 September 2004

                          Associated British Foods plc

                        Pre Close Period Trading Update



Associated British Foods plc issues the following update prior to entering its
close period for its full year results to 18 September 2004, which are scheduled
to be announced on 10 November 2004.


At the time of the announcement of the interim financial results in April, the
Chairman stated that currency and raw materials would have an adverse impact on
second half results but that we expected to be able to report further progress.
Despite these pressures, our businesses have performed well and we now expect
second half operating profit growth to be similar to that achieved in the first
half.


British Sugar in the UK had a good campaign with a crop of 1.37m tonnes and
record factory performance but, as expected, profit will have reduced in the
second half as compared to the same period last year due to the weakness of the
euro against sterling.  However, the benefit of higher sugar prices both in
Poland, following the introduction of the EU sugar regime, and in China will
more than offset the decline in profit in the UK.


In Grocery, key raw material prices remained high throughout the second half but
most of our businesses successfully mitigated these higher costs through price
increases and improved efficiencies.  In the US, although corn and soy oil costs
remained significantly ahead of last year they are now below their peak. There
has been improvement in trading at ACH and Mazola volumes remain encouraging.
Early results from Capullo in Mexico, which was acquired at the beginning of
May, are in line with expectations.


Trading at George Weston Foods in Australia continued to be affected by
competitor pricing pressure in the bread market.  Construction of the new Sydney
bakery is progressing with full commissioning expected in the summer next year.


Primark has continued to trade well and like-for-like sales growth in the second
half of the year will be ahead of that achieved in the first half.  Four new
stores have been opened this year and the refit and extension of a further eight
existing stores was completed during the year. The total number of stores is now
120 with 2.3 million sq ft of retail selling space.


Investment income will be ahead of last year and has benefited from recent
increases in UK interest rates.


Expenditure on acquisitions in the financial year, including debt acquired, is
expected to be £242m which mainly comprises the US herbs and spices business of
Burns Philp, the Capullo vegetable oil business in Mexico, the foods brands of G
Costa and Billington's sugar.  Proceeds from disposals, including the ruminant
compound feed business of ABNA and the realisation of associated working
capital, are estimated at £41m.


Subject to the receipt of the required regulatory approvals, the acquisition of
the yeast and bakery ingredients businesses of Burns Philp is expected to be
completed at a cost of US$1,175m at the end of September and will consequently
be accounted for in our next financial year.


We will adopt FRS17 - 'Retirement benefits' in the current financial year and
the effect on the accounts is outlined in note 1.  We will also revise the
composition of our geographic segments to reflect the increasing international
breadth of our businesses as described in note 2.  A restatement of the
segmental information for 2003 to reflect these changes is set out in note 3.


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]


Note 1

As FRS 17 - 'Retirement benefits' is now expected to result in substantially
the same accounting treatment as that required under International Accounting
Standards we will adopt the new accounting standard in the current year.  The
accounts for the year to 13 September 2003 will be restated to reflect this
change of accounting policy and the effect will be to reduce the group's
adjusted operating profit in 2003 by £23m and reduce the group's adjusted profit
before tax by £15m. The impact on 2004 profits will not be materially different
from that in 2003.  The notes to the 2003 accounts disclosed the amounts that
will now be incorporated in the balance sheet, profit and loss account and
statement of total recognised gains and losses under FRS 17.  There is no impact
on the group's cash flows.


Note 2

To reflect the increasing international breadth of our businesses, and in
anticipation of the acquisition of the international yeast, bakery ingredients
and US herbs and spices businesses from Burns Philp, we will revise the
composition of our geographic segments.  They will now be reported in the annual
accounts as follows:

o          United Kingdom

o          Rest of Europe

o          The Americas

o          Australia, Asia & Rest of World


Note 3

The following details the restatement of the segmental information for 2003 to
reflect the adoption of FRS17 and the new geographic segments:



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             2,935       309      1,207         United Kingdom            2,670        278      1,117
Australia & New Zealand      639        29        234         Rest of Europe              473         36        178
North America                862        77        210         The Americas                862         78        210
Elsewhere                    323        13        149         Australia, Asia & Rest      807         32        310
                                                              of World
Inter company sales         (23)         -          -         Inter company sales        (76)          -          -
Pension credit                 -        18          -
                           4,736       446      1,800                                   4,736        424      1,815

Businesses disposed:                                          Businesses disposed:
European Union               127         5         15         United Kingdom              127          5         15
Australia & New Zealand       33       (3)          5         Rest of Europe                2          -          -
North America                 11         1          -         The Americas                 11          1          -
Elsewhere                      2         -        (4)         Australia, Asia & Rest       33        (3)          1
                                                              of World
Pension credit                 -         1          -
                           4,909       450      1,816                                   4,909        427      1,831
Amortisation of goodwill       -      (42)          -         Amortisation of               -       (42)          -
                                                              goodwill
                           4,909       408      1,816                                   4,909        385      1,831




The goodwill amortisation charge arises in the European        The goodwill amortisation charge arises in the UK
Union £8m, North America £23m, Australia &                     £6m, Rest of Europe £4m, the Americas £23m,              
New Zealand £1m and Elsewhere £10m                             and Australia, Asia & Rest of World £9m.



Analysis by business


                               as previously reported                                               restated
                             operating        capital                                      operating        capital
                                profit       employed                                         profit       employed
                                    £m             £m                                             £m             £m

Grocery                            151            704          Grocery                           148            709
Primary food &                     174            699          Primary food &                    172            704
agriculture                                                    agriculture
Ingredients                         32            134          Ingredients                        32            136
Retail                              87            293          Retail                             88            293
Central costs                     (16)           (30)          Central costs                    (16)           (27)
Pension credit                      18              -
                                   446          1,800                                            424          1,815
Businesses disposed:                                           Businesses disposed:
Grocery                              -              5          Grocery                             -              5
Primary food &                       2             11          Primary food &                      2             11
agriculture                                                    agriculture
Packaging                            1              -          Packaging                           1              -
Pension credit                       1              -
                                   450          1,816                                            427          1,831
Amortisation of goodwill          (42)              -          Amortisation of                  (42)              -
                                                               goodwill
                                   408          1,816                                            385          1,831







                      This information is provided by RNS
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