Milling & Baking News - January 15, 2019 - 24

Stock Market Review

Weakness prevails across foreign
grain-based foods companies in 2018

F

oreign grain-based foods companies acquisitions could follow as the company
experienced sharply weaker perfor- seeks to broaden its portfolio.
Premier Foods, the U.K.'s largest food
mance in 2018 compared to that of
2017, as 29 of the 39 companies tracked producer, finished 2018 at 33p, down
by Milling & Baking News recorded year- 23% from 42.75p in 2017 and compared
over-year declines in share price while with 46.75p in 2016. As Premier's stock
only 10 posted advances. By comparison, price fell during the year, company
23 companies recorded year-over-year in- executives indicated that it must
creases in both 2017 and 2016, 19 posted accelerate its turnaround plan and
increases in 2015, 25 companies posted conceded that nothing is off the table,
increases in share price in 2014,
and 32 companies posted yearover-year gains in 2013.
Foreign stocks, 2018 share
On the London Stock Exchange,
price performance
Associated British Foods finished
the year at 2043p, down 28% from
Marks & Spencer
United Kingdom
-21%
2820p in 2017 and compared with
Premier
Foods
United
Kingdom
-23%
2745p in 2016. Michael McLintock,
Gregg's P.L.C.
United Kingdom
-10%
who took over as chairman of ABF
Tesco
United Kingdom
-9%
in 2018, in the company's annual
Carr's Group
United Kingdom
18%
report said the company reported
Associated British Foods
United Kingdom
-28%
"a year of progress" in 2018 and
Tate & Lyle P.L.C.
United Kingdom
-6%
continues to invest for the future
of the business. Mr. McLintock
Sainsbury P.L.C.
United Kingdom
6%
said losses remained unacceptable
Finsbury Food Group P.L.C.
United Kingdom
-5%
at Allied Bakeries during 2018,
Kerry Group
Ireland
-7.5%
although some progress was made
Greencore Group
Ireland
-22%
with cost reduction programs and
Origin Enterprises
Ireland
-10%
price increases.
GrainCorp Ltd.
Australia
12%
Carr's Group P.L.C.'s share price
First Baking Co.
Japan
-18%
closed at 150.75p in 2018, up 18%
Nisshin Seifun
Japan
-1%
from 128p in 2017 and up narrowly
Nissin Foods Holdings
Japan
-16%
from 149.38p in 2016. Chris
Nippon Flour Mills Co. Ltd.
Japan
6%
Holmes, chairman of Carr's, in
Yamazaki Baking
Japan
5%
the company's annual report said
Indofood
Indonesia
-2%
Carr's delivered a performance
Olam International
Singapore
-19%
ahead of the board's expectations
Wilmar International
Singapore
10%
and "significantly ahead" of the
Danone
France
-12%
prior year. He said the company's
Ahold n.v.
The Netherlands
20%
agriculture division benefited from
Corbion
The Netherlands
-9%
investments made in 2017. Revenue
DSM
The Netherlands
-10%
in the agriculture division increased
Unilever
The Netherlands
1%
nearly 14% in 2018, while operating
Nestle S.A.
Switzerland
-5%
profit rose 20%.
Aryzta AG
Switzerland
-91%
Tate & Lyle P.L.C., the global
sweetener company, fell to a
Alexandria Flour
Egypt
-53%
52-week low of 522.6p in midEast Delta Flour
Egypt
28%
March and climbed to a high of
Middle Egypt Flour
Egypt
-11%
722.8p in early December, before
Middle and West Delta Flour Co. Egypt
33%
ultimately closing at 660p, down
North Cairo Flour
Egypt
-26%
from 703p in 2017. Tate & Lyle
South Cairo & Giza Flour Mills
Egypt
-35%
in May agreed to acquire a 15%
Egyptian Starch
Egypt
-11%
equity holding in Sweet Green
Upper Egypt Flour
Egypt
-19%
Fields USA L.L.C., a privately-held
Ebro Foods
Spain
-11%
global stevia ingredients company.
Flour Mills of Nigeria
Africa
-20%
Nick Hampton, chief executive
Tiger Brands Ltd.
South Africa
-41%
officer of Tate & Lyle, said similar
24 / January 15, 2019

Milling & Baking News

including a potential sale of parts of the
business. Additionally, Gavin Darby, the
company's c.e.o. since 2013, announced
his intent to step down on Jan. 31, 2019,
under pressure from an activist investor.
It was a wild ride for Finsbury Food
Group P.L.C. The U.K.-based maker
of cake, bread and gluten-free bakery
goods climbed to a 52-week high share
price of 131p on May 9 before dropping
sharply in July. The company's
share price rebounded temporarily
in August-October before tumbling
in November and December to close
at 102.5p, which was down 5% from
108p in 2017. In September, Finsbury
acquired Ultrapharm Ltd., a glutenfree bakery that produces a range of
baked foods, including bread, buns,
rolls and muffins.
Greggs P.L.C., an operator of
retail bakery shops and cafes in
the United Kingdom, started the
year strong, at 1373p, but cratered
in July, falling to a low of 942p. The
company's share price ultimately
picked up momentum to finish the
year strong at 1266p, which was
still down 10% from 1399p at the
close of 2017.
The three leading U.K. retail
chains sustained mixed share price
moves during the past year. Tesco,
the leader in U.K. food retailing,
closed at 190.1p, down 9% from
209.25p a year ago, while Marks
& Spencer fell 21% to finish the
year at 247.2p. Sainsbury, P.L.C.,
which closed the year at 265p, was
stronger, up 6% from 241.4p.
In Ireland, Greencore Group
P.L.C., a European maker of
convenience
food
and
malt
products, finished at 178.2p, down
22% from 229.7p in 2017. In October,
Greencore sold its U.S. subsidiary,
Greencore USA, to Hearthside
Food Solutions for $1,075 million.
The transaction followed earlier
comments from Patrick F. Coveney,
c.e.o. of Greencore, indicating that
profitability in the U.S. business had
been failing to meet expectations set
out for the unit in October 2017.
Kerry Group finished the year
at €86.5, down 7.5% from €93.5
in 2017 but up from €67.67 in
bakingbusiness.com / world-grain.com
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Milling & Baking News - January 15, 2019

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