Trading Statement

Associated British Foods PLC
27 February 2006

27 February 2006


                          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 4 March 2006, which are scheduled to be
announced on 19 April 2006.


The Chairman's statement at the Annual General Meeting on 9 December 2005 said
that trading in the early part of the year had been a little ahead of the
previous year, that competition in all our markets was strong and the trend in
energy prices was a particular concern.  We expected to deliver further progress
as the year developed.  This continues to be the case.


We have previously highlighted that the EU market for sugar will likely face a
period of price volatility over the next few years.  This was expected to result
from imbalances in supply and demand within the market, the withdrawal of
exports from the EU and changes in producer behaviour in anticipation of reform
of the EU sugar regime.  Trading in the current year for British Sugar in the UK
and Poland has been difficult with price pressure on contracts for this calendar
year and sharply higher energy costs.  Operating profit for these businesses
will be lower than last year as a result.  However, this year's campaigns were
excellent in the UK and Poland and the UK crop is forecast at 1.34 million
tonnes.  British Sugar has announced the closure of two of its four factories in
Poland and continues to work on cost reduction and the exploitation of new
revenue opportunities, including the manufacture of bioethanol, in the UK.   In
China, the effect on profit of a lower crop has been offset by much higher
pricing for sugar.


In Grocery, ACH has performed well and benefited from a continued strong
contribution from Capullo in Mexico.  Twinings, Ovaltine and Ryvita all achieved
strong sales growth.  However, bakery profitability in Australia continued to be
affected by the final commissioning costs of the new Sydney bakery and, in the
UK, Allied Bakeries has achieved lower volumes than expected.


In Ingredients, AB Mauri will contribute strongly, reflecting a full half year
of profit, the benefits of price and volume increases and growth in bakery
ingredients.  Capacity has been increased in a number of Asian factories and the
newly opened factory in Western China is operating well.


Primark has continued to trade well and like-for-like sales growth is expected
to be some 6% in the first half year.  This is despite the effects of the fire
which destroyed the main UK warehouse last November.  Stock levels have now
recovered well.  Seven new stores were opened in the first half of the year and
three stores closed.  The total number of stores is now 126 with 2.9 million sq
ft of retail selling space.


Trading in the Littlewoods stores finished in January and the trading result
will be somewhat ahead of our expectation at the time of acquisition.  41 stores
have now been transferred to Primark management to be refitted and these will be
opened as Primark progressively from late Spring this year until early 2007.
It is now expected that some 1.4 million sq ft of retail selling space will be
traded from these stores compared to 1.2 million sq ft previously announced.
Agreement has been reached to sell 59 of the remaining 79 stores and the value
realised to date is also ahead of our expectation.  Negotiations for the sale of
the remaining stores are continuing.


As expected net investment income will be lower this year as a result of the
investment in the acquisition of the Littlewoods stores and higher interest
expense on our US dollar borrowings.


Our interim results will be prepared under International Financial Reporting
Standards ('IFRS') applying the accounting policies published in our IFRS
Transition Document in December 2005.  The comparative results for the 24 weeks
ended 5 March 2005 prepared under these policies are attached.



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]



Appendix

Presentation of information under International Financial Reporting Standards
('IFRS')


The group's interim results for the period ending 4 March 2006 will be prepared
applying accounting policies in accordance with IFRS.  These results will
include comparative information for 2005.


This appendix presents the restatement of the group's interim results for the
period ending 5 March 2005, previously reported under UK Generally Accepted
Accounting Principles (UK GAAP). The restated statements have been prepared on
the same basis as those for the year ending 17 September 2005 which were
published on 15 December 2005 and which are available on the company's website
at www.abf.co.uk/investors.  The restated financial information is unaudited.


In the restated results for the year ending 17 September 2005 the group had
adopted the IASB's amendment to IAS 19 entitled IAS 19 Actuarial Gains and
Losses.  This has now been endorsed by the EU.  In the restated results for the
year ending 17 September 2005 the group has early adopted IFRS 5, Non-current
Assets Held for Sale and Discontinued Operations.


Reconciliations to assist the reader in understanding the nature and quantum of
differences between the application of UK GAAP and IFRS on these financial
statements are also included in this appendix.


Restated consolidated statements

Consolidated income statement
for the 24 weeks ended 5 March 2005


                                                                      Unaudited
                                                                 24 weeks ended
                                                                   5 March 2005
                                                       Note                  £m
Revenues                                                                  2,618
Operating costs                                                         (2,387)
                                                                            231
Share of profit from joint ventures and associates                            2
Profits less losses on sale of fixed assets                                  19
Operating profit                                          1                 252
Adjusted operating profit                                                   243
Profits less losses on the sale of fixed assets                              19
Amortisation of intangibles                                                (10)
Profit before interest                                                      252
Investment income                                                            25
Interest payable                                                           (14)
Other net financial income                                                    5
Profit before taxation                                                      268
Adjusted profit before taxation                                             259
Profits less losses on the sale of fixed assets                              19
Amortisation of intangibles                                                (10)
Taxation            - UK                                  2                (42)
                    - Overseas                            2                (26)
                                                                           (68)
Profit for the period                                                      200
                                                                      
Attributable to:                
Equity shareholders                                                        198
Minority interests                                                           2
Profit for the period                                                      200

Basic and diluted earnings per ordinary share (pence)                     25.1
Adjusted earnings per share (pence)                                       23.6
Dividends per share (pence)                                              11.15



Consolidated balance sheet
at 5 March 2005


                                                                      Unaudited
                                                                             At
                                                                   5 March 2005
                                                                             £m
Non-current assets
Intangible assets                                                         1,078
Property, plant and equipment                                             1,632
Non-current assets held for sale                                             12
Investments in joint ventures                                                15
Investments in associates                                                    13
Employee benefits asset                                                      73
Deferred tax assets                                                          41
Other investments                                                             1
Total non-current assets                                                  2,865
                                                
Current assets
Inventories                                                                 841
Trade and other receivables                                                 665
Other investments                                                           429
Cash and cash equivalents                                                   640
Total current assets                                                      2,575
TOTAL ASSETS                                                              5,440

Current liabilities
Interest bearing loans and overdrafts                                     (102)
Trade and other payables                                                  (753)
Income tax                                                                (116)
Amounts owed to joint ventures                                              (2)
Provisions                                                                 (13)
Total current liabilities                                                 (986)
                                                               
Non-current liabilities
Interest bearing loans and overdrafts                                     (503)
Income tax                                                                  (2)
Provisions                                                                 (39)
Deferred tax liabilities                                                  (186)
Employee benefits liability                                                (10)
Total non-current liabilities                                             (740)
TOTAL LIABILITIES                                                       (1,726)
NET ASSETS                                                                3,714

Equity                                          
Issued capital                                                               47
Other reserves                                                              173
Own shares reserve                                                         (12)
Pension reserve                                                              42
Translation reserve                                                           5
Retained earnings                                                         3,435
                                                                          3,690
Minority interest - equity                                                   24
TOTAL EQUITY                                                              3,714




Consolidated cash flow statement
for the 24 weeks ended 5 March 2005

                                                                      Unaudited
                                                                 24 weeks ended
                                                                   5 March 2005
                                                                             £m
Cash flow from operating activities
Profit before taxation                                                      268
Adjustments for non-cash items:                         
- Amortisation                                                               10
- Depreciation                                                               79
- Other                                                                       8
Pension cost less contributions                                               7
Profits less losses on sale of fixed assets                                (19)
Share of (profit) from joint ventures and associates                        (2)
Investment income                                                          (25)
Interest payable                                                             14
Other net financial income                                                  (5)
Operating cash flow before changes in working                               335
capital and provisions                                          
Increase in inventories                                                   (314)
Increase in receivables                                                    (15)
Increase in payables                                                         52
Increase in other provisions                                                 13
Income tax paid                                                            (72)
Net cash from operating activities                                          (1)

Cash flows from investing activities
Purchase of tangible fixed assets                                         (142)
Proceeds from the sale of tangible fixed assets                              31
Purchase of subsidiary undertakings                                       (630)
Sale of subsidiary undertakings                                               1
Proceeds from the sale of joint ventures and associates                       1
Interest received                                                            27
Net cash from investing activities                                        (712)

Cash flows from financing activities                         
Dividends paid to minorities                                                (2)
Dividends paid to shareholders                                             (88)
Interest paid                                                              (13)
Management of liquid resources                                              109
Financing                                                                   200
Net cash from financing activities                                          206

Net decrease in cash and cash equivalents                                 (507)
Cash and cash equivalents at 18 September 2004                            1,144
Effect of exchange rate fluctuations on cash held                             3
Cash and cash equivalents at 5 March 2005                                   640




Consolidated statement of recognised income and expense
for the 24 weeks ended 5 March 2005

                                                                      Unaudited
                                                                 24 weeks ended
                                                                   5 March 2005
                                                                             £m
                                                             
Foreign exchange translation differences                                     16
Net loss recognised directly in equity                                       16
Net profit for the period                                                   200
Total recognised income and expense for the period                          216

Attributable to:
Equity shareholders                                                         214
Minority interests                                                            2
Total recognised income and expense for the period                          216



Notes to the interim report

1.         Segmental Analysis - 24 weeks ended 5 March 2005


Business segments                                               Unaudited
                                     Primary                                                        Inter-
                           Grocery      Food Agriculture   Ingredients      Retail      Central    segment   Total
                                £m        £m           £m           £m          £m           £m         £m      £m

Revenue from external        1,248       342          398          269         448            -          -   2,705
customers
Businesses disposed              -         -            4            -           -            -          -       4
Inter-segment revenue          (4)       (8)            -          (2)           -            -       (77)    (91)
Total external revenue       1,244       334          402          267         448            -       (77)   2,618

Adjusted profit from            84        78            8           25          59         (11)          -     243
operations
Profits less losses on           -        19            -            -           -            -          -      19
sale of property, plant
& equipment
Amortisation of                (1)         -            -          (9)           -            -          -    (10)
intangibles
Profit from operations          83        97            8           16          59         (11)          -     252
Net financing costs              -         -            -            -           -           11          -      11
Income tax expense               -         -            -            -           -         (68)          -    (68)
Other net financial              -         -            -            -           -            5          -       5
income
Net profit for the              83        97            8           16          59         (63)          -     200
period

Segment assets (excl.        1,734       897          282          984         497          474              4,868
investments in
associates and joint
ventures)
Investment in associates         1         4            -           23           -            -          -      28
& joint ventures
Segment assets               1,735       901          282        1,007         497          474          -   4,896

Segment liabilities          (333)     (182)         (74)         (78)        (95)         (45)          -   (807)

Capital expenditure             42        16            2           11          71            -          -     142
Depreciation                    32        25            4           10           8            -          -      79
Amortisation                     1         -            -            9           -            -          -      10
Other significant               13         -            -            1           -            -          -      14
non-cash expenses



Geographical segments                                                                Australia,
                                                   United      Rest of         The       Asia &     Inter-
                                                  Kingdom       Europe    Americas      Rest of    segment   Total
                                                                                          world
                                                       £m           £m          £m           £m         £m      £m
Revenue from external                               1,390          303         519          439       (33)   2,618
customers
Segment assets                                      2,434          783         945          734          -   4,896
Capital expenditure                                    88           19           9           26          -     142
Depreciation                                           49            7          10           13          -      79
Amortisation                                            1            2           5            2          -      10
Other significant                                       -            5           9            -          -      14
non-cash expenses



                                                                       Net Segment Assets & Liabilities      4,089

                                                                       Balance Sheet
                                                                       (Extract)
                                                                       Intangible assets                     1,078
                                                                       Property, plant and equipment         1,632
                                                                       Non-Current assets held for sale         12
                                                                       Interests in net assets of :
                                                                                            Joint Ventures      15
                                                                                                Associates      13
                                                                       Current Assets
                                                                       Inventories                             841
                                                                       Trade and other receivables             665
                                                                       Cash and cash equivalents               640
                                                                       Trade and other                       (753)
                                                                       payables
                                                                       Amounts owed to Joint Ventures          (2)
                                                                       Provisions                             (52)

                                                                                                             4,089




Notes to the Interim Report (continued)

2.         Income Tax Expense - 24 weeks ended 5 March 2005


                                                                                                 Unaudited
                                                                                            24 weeks ended
                                                                                              5 March 2005
                                                                                                        £m
Current tax expense
UK - income tax at 30%                                                                                  39
Overseas - income and corporation tax                                                                   26
                                                                                                        65
Deferred tax expense
UK deferred tax                                                                                          3
Total income tax expense in income statement                                                            68

Reconciliation of effective tax rate
Nominal tax charge at UK income tax rate (30%)                                                          81
Lower tax rates on overseas earnings                                                                  (12)
Expenses not deductible for tax purposes                                                                 3
Utilisation of losses                                                                                  (5)
Deferred tax not recognised                                                                              1
                                                                                                        68




Detailed Reconciliations 

Consolidated income statement 
for the 24 weeks ended 5 March 2005

Consolidated balance sheet 
at 5 March 2005

Consolidated cash flow statement 
for the 24 weeks ended 5 March 2005


Please follow the link below, to view the above tables;

http://www.rns-pdf.londonstockexchange.com/rns/9518y_-2006-2-27.pdf



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