Sunday 2 March 2014

Associated British Foods (ABF) annual report 2013

summary, annual, report, 2013, Associated British Foods

First of all I must say that I am embarrassed and sorry for completely dropping the ball on this one! I This report came out already in November 2013 due to that ABF is running a broken year. I downloaded the report and read it but completely forgot to make either a summary of it or to publish a  new analysis of it. So for that reason both are coming now and my deepest apology for this ball drop. I can no longer remember how the stock market responded to the news but ABF has increased substantially in value on the market that it was probably accepted pretty ok.

All the information given here can be found in the annual report that is published here.

What we can see in the financial statement below ABF had a great year in 2013 with increased revenue of 8.7% and increased profits to the shareholders by 6.5%. This is indeed good news!

The liabilities did during the year also decrease and the equity increased so for us shareholders this was indeed a good year and the stock market have taken notice of ABF lately... too much in my personal opinion.

If we look closer at the segments development we see that Grocery, Agriculture as well as Retail did excellent and Sugar and Ingredients was practically standing still on the spot. Classically Sugar has been the big profit source for ABF and it has now started to be over run by Retail (Primark).

Conclusion: I am happy with the development of my shares in ABF. The company is doing very well and the valuation is increasing accordingly. Actually the valuation is too high as you will see in the contrarian analysis that I will try to make for ABF tomorrow and I am getting very tempted to sell but I am very uncertain because I know that I got these shares cheap and I think the future of the company is great and will continue to be so for many years with ups and downs in valuation.

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