Interim Management Statement

Associated British Foods PLC
17 January 2008

17 January 2008


                          Associated British Foods plc

                          Interim management statement



Associated British Foods plc today issues its first interim management statement
in accordance with the requirements of the UK Listing Authority's Disclosure and
Transparency rules. The period covered is the 16 weeks to 5 January 2008.



Highlights

  • Group revenue up 13%
  • Sugar developments

     -  £100m investment in Mali announced by Illovo
     -  investment in beet sugar in north east China, now 11 factories

  • Primark total sales ahead 26%



Trading performance

Group revenue for the first 16 weeks was 13% ahead of the same period last year
driven by strong growth from each of Primark, Agriculture, Grocery and
Ingredients. This was marginally offset by lower revenues from Sugar.

Sugar revenues were 12% lower than last year largely because, as previously
reported, the equivalent period last year benefited from the early shipment of
export sales from the UK.  Profit in the UK will be lower than last year, mainly
as a result of further effects of the EU sugar regime restructuring, but also
higher energy costs and a smaller crop.  Poland has had a record crop but profit
will also suffer from regime changes.  The recent strengthening of the euro will
benefit both businesses.  Sugar production in southern Africa will be lower than
expected as high rainfall levels have made it impossible to harvest all
available cane. This has particularly affected South Africa and Zambia. Illovo
has announced an investment of £100m for the construction, in Mali, of a new
sugar mill with an ethanol and electricity co-generation unit, in which it will
have a 70% stake. It will manage the agricultural development to produce the
sugar cane required to supply this new facility. A total of 11 sugar beet
factories have now been acquired in north east China and the campaign is
progressing well.

Our agriculture businesses made a strong start to the year with revenue up 20%.
Frontier benefited from its operations in the wheat market and UK animal feeds
performed well.

Sales at Primark were 26% ahead of last year reflecting the increase in retail
selling space and strong like-for-like sales growth. Christmas trading was
ahead of our expectations. At 5 January 2008 there were 173 stores with 5
million sq ft of selling space. Since last year end we have opened new stores
in Jerez and Madrid, bringing the number of stores in Spain to four, a new store
in Cork and larger stores in Tralee and Brighton which replaced smaller stores
there.  A further four stores in Spain are planned to open in April.

Grocery revenue was 15% ahead with good sales growth from Twinings Ovaltine and
a continuation of the improvement seen in the second half last year from Allied
Bakeries.  Wheat prices remain high both in the UK and Australia but have now
been successfully recovered through pricing. Trading by the new world foods
business, which combines the Patak's and Blue Dragon brands, is encouraging.  As
expected, the sharp increases in corn and soy oil costs in the US have led to
margin pressure and lower volumes at ACH, but price increases have been made to
improve profitability.

Ingredients revenue was 16% ahead.  We are investing £50m in additional yeast
and yeast extract capacity in north east China and £17m in enzyme capacity
expansion in Finland.

Cashflow for the period and the group's net debt are in line with expectations
although working capital is higher than forecast as a result of the impact of
higher commodity prices on stock values and volumes.


Trading outlook

Trading in the current year has been fully up to our expectations.  As
previously highlighted, reform of the European Union sugar regime will have a
large negative effect on this year's profit.  However, we continue to expect
profits in the rest of the group to show good progress despite volatility in
some commodity prices.



For further enquiries please contact:

Associated British Foods
John Bason, Finance Director                                 Tel:  [phone]

Citigate Dewe Rogerson
Jonathan Clare, Chris Barrie, Hannah Seward                  Tel:  [phone]





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