Latest news with #CliveBlack
Times
2 days ago
- Business
- Times
M&S food sales slow after cyberattack
Sales growth slowed in Marks & Spencer's food business over the past three months as it dealt with the fallout from a crippling cyberattack. The FTSE 100 retailer reported sales in its food arm rose 9.1 per cent year-on-year over the 12 weeks to June 14, according to NielsenIQ, the research company. That represented a slowdown from 10.8 per cent growth in the three months to May 17 and 14.7 per cent in the report before that, reflecting the disruption that followed a cyberattack in April. Though M&S's market share ticked up ten basis points on the year to 3.7 per cent, it was down from the 3.8 per cent reading in last month's report. M&S was hit by a cyberattack over Easter weekend that initially affected its online services, including click and collect and contactless payments. The high-street stalwart paused online orders for almost two months, including clothes deliveries, and also took other systems offline. That reduced food availability and also resulted in higher waste and logistics costs. The company has since restored its operations. The group resumed taking online orders for clothing lines on June 10 after a 46-day suspension. However, M&S estimated that the attack would hit profits by about £300 million, although it is expected to claim £100 million from insurers alongside other mitigations. Clive Black of Shore Capital, the broker, noted 'commendable momentum' from the retailer despite the slowdown. 'No doubt there was a particular dip in momentum at the end of April and into May, but it looks like the label is returning to outperformance again,' he said. 'Well done M&S, however, on seeing through a still strong performance in the face of immense malevolent challenge.' • Retail giants 'face £600m bill' as new business rates bite Most of NielsenIQ's data echoed the findings of rival researcher Kantar's report on Tuesday, with robust performances from market leader Tesco, number two player Sainsbury's and online supermarket Ocado. However, M&S is not fully included in Kantar's market share data set. Black said: 'M&S, despite disruption, shows up well whilst Sainsbury & Tesco continue to gain share. The market is, as ever, competitive, but also rational; no price war is evident, which augurs well for earnings outcomes in 2026. The health agenda grows for the sector.' Asda, which has been struggling since its private equity takeover, saw another slowdown in sales, according to NielsenIQ. Sales at the UK's third-largest grocer fell by 1.6 per cent during the 12-week period, while market share slipped from 12.4 per cent to 11.5 per cent. Total till sales growth increased by 3.8 per cent in the past four weeks, up from 3 per cent the previous month, thanks to warmer weather 'enabling al fresco dining', NielsenIQ said. An M&S spokeswoman said: 'We continue to make good progress in growing our food business, outperforming the market on both volume and value in all the latest data. We've launched over 200 new and upgraded lines in our foodhalls over the last two weeks, exciting both new and existing customers as they visit us more often and drive our market share growth over the long term.'
Daily Mail
06-05-2025
- Business
- Daily Mail
Kingsmill and Hovis owners in potential bread megamerger talks
The owners of Kingsmill and Hovis are in talks over a potential deal that could see the merger of two of Britain's biggest bread brands. Associated British Foods, which owns Kingsmill's parent company Allied Bakeries, on Tuesday confirmed media reports revealing talks over the weekend and reiterated the 'very challenging' market conditions faced by the brand. The group, which also owns Primark, told shareholders last week it was evaluating strategic options for Allied Bakeries amid a decades-long decline in the sale of supermarket loaves. Sky News revealed the talks on Saturday, citing the potential for a deal to be structured as an acquisition of Hovis by ABF. However, ABF is said to be exploring other options for the future of Allied Bakeries, including deals not involving Hovis. ABF said it was 'in discussions' with Hovis owner Endless, an investment fund, but there can be no certainty that a transaction will be included. 'A further announcement will be made as and when appropriate,' it added. The UK bakery market is estimated to be worth around £5billion in annual sales, with the equivalent of 11m loaves being sold each day. But changing dietary habits and higher prices have pushed the market into contraction over recent years. Any deal could face obstacles from Britain's competition watchdog, which would likely probe the consequences of reducing the country's major bread market players from three to two firms. Warburtons is the market leader with a 34 per cent stake of the wrapped sliced bread sector, while Hovis hold 24 per cent and Allied is on 17 per cent. Head of consumer research at Shore Capital Clive Black said Allied Bakeries has faced a 'highly competitive and oversupplied British plant bread sector for some years now', leading to substantial losses. Allied Bakeries' accumulated costs and losses could be as much as £750millon, according to Black, with estimates losses of £30million a year. Black said: 'What the Competition & Markets Authority may make of matters remains to be seen. 'Allied has not only been a perennial challenge for ABF, it has also been a highly costly one, and so a better solution should be welcomed by shareholders.'
Yahoo
29-04-2025
- Business
- Yahoo
Allied Bakeries put under strategic review by parent ABF
Allied Bakeries has been put up for strategic review in what parent company Associated British Foods (ABF) called a 'very challenging market'. ABF made the revelation today (29 April) as it disclosed results for the 24 weeks to 1 March, with revenues and operating profits down for the group as a whole and also for the grocery division that houses Allied Bakeries. While sugar, part of ABF's ingredients business unit, weighed on overall operating profit, Kingsmill and Sunblest brand owner Allied Bakeries pressured profits in grocery. 'Our UK-focused businesses declined overall. As expected, this was primarily due to lower volumes and sales in Allied Bakeries, which resulted in an increased operating loss,' ABF said in the commentary. 'Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we expect to provide an update in H2 2025.' Allied Bakeries also produces the Allinson's brand but supplies UK retailers and supermarkets with private-label bread products as well. ABF, which also owns and operates the Primark clothing stores, does not break down the financial performance of Allied Bakeries or for other food brands within grocery such as Twinings tea and the Patak's and Blue Dragon sauces lines. Group results showed a 2% decline in sales to £9.51bn ($12.73bn) in the period to 1 March, while adjusted operating profit dropped 12% to £835m. Profit before tax fell 21% to £692m with an EPS decrease of 8% to 83.6 pence. ABF's shares were down more than 6% at 2,091 pence as of 11:53 am BST in London today, eroding the year's gain to 1.5%. Post the results, Shore Capital has put ABF's shares 'under review' from a buy rating for the investment firm's house stock. Consumer goods analysts Clive Black at Shore Capital wrote in a research note today: 'Allied Bakeries remains an unwelcome problem child with more demonstrative talk about solutions from management. 'As for grocery and ingredients, one or two frustrations aside, notably the long-running sore that is UK bakeries where strategic options are being examined, in truth, where we believe that the business has been earnestly seeking a better medium-term outcome, ABF has a strong portfolio of valuable brands…' In terms of grocery, ABF's sales revenue dropped 2% to £2.09bn. Operating profit was flat at £219m, while adjusted operating profit fell 1% to £227m. ABF said it posted 'good sales growth' in grocery 'across most of our brands' with the exception of Allied Bakeries and the cooking oils business in the US, which includes the Mazola brand. Group CEO George Weston said: 'These results reflect a robust performance in four of our five divisions. I am frustrated with the results in our sugar business, but we are clear on what needs to be done by way of operational and regulatory solutions to improve financial performance. 'Looking ahead, in an operating environment with significant uncertainties, the group remains well positioned and our strong balance sheet enables continued investment to deliver long-term sustainable growth.' ABF added in the results commentary: 'We continue to expect overall performance this year to reflect the normalisation of profitability in our US-focused businesses and an operating loss in Allied Bakeries.' "Allied Bakeries put under strategic review by parent ABF" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Guardian
17-04-2025
- Business
- The Guardian
Sainsbury's joins UK retailers' £1bn profits club but warns of flat year ahead
Sainsbury's has joined Tesco, Next and Marks & Spencer as one of a handful of retailers who have made £1bn in profits, but it does not expect to beat that figure this year amid rising costs and price competition. Simon Roberts, the chief executive of Sainsbury's, indicated that the group was ready to take on Asda, which has pledged to cut prices in an attempt to win back market share, saying his business was 'committed, above all else, to sustaining the strong competitive position we have built – consistently giving customers the great value they have come to expect'. The retailer also said it would be closing two of its five non-food warehouses to save £70m a year and introducing more technology to monitor self-service tills and help shoppers scan and pay for goods by themselves as the cost of labour has increased with changes to employers national insurance and an increase in the legal minimum wage. It said that 70% of its sales were now self-service up from 40% five years ago. The move is likely to hit jobs but Sainsbury's did not say how many could be affected. Sainsbury's pledge to maintain its competitive edge comes after Tesco, Sainsbury's and M&S had billions of pounds wiped off their stock market value last month after the UK's third-biggest supermarket chain said its profits were likely to decline this year as it invested more in cutting prices and putting more staff in shops. Clive Black, Sainsbury's house broker at Shore Capital, said the retailer's prediction that it would not grow profits this year meant it was 'showing it is determined to hold on to its strengthened value credentials'. In a statement released on Thursday, Sainsbury's said pre-tax profits rose 38.6% to £384m but underlying operating profit hit £1bn if one-off items, such as those related to the closure of cafes and hot food counters announced in January, were excluded. Growth was led by the Sainsbury's chain, which increased sales by 4.2% to £26.6bn, but profits fell back at Argos, where sales fell 2.7% to £4.9bn, behind expectations. The supermarket group, which owns Habitat as well as Argos, plans to open 15 new supermarkets – 12 on sites it bought from the collapsed DIY group Homebase – and 25 more convenience stores. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Roberts said: 'Our belief in the strength of Sainsbury's offer has driven our decision to make our largest investment in expanding our store space in over a decade as we open supermarkets in key new locations and extend food space within many of our existing stores.'
Telegraph
01-04-2025
- Business
- Telegraph
Asda sales slump deepens as Aldi closes in on struggling rival
Asda's sales slump has intensified as discount store Aldi closes in on the struggling supermarket. The British grocer's sales dropped 5.6pc in the 12 weeks to March 23, according to Kantar – marking a sharper decline than the 5pc decline in the prior period and a 5.2pc fall before that. The latest fall means that Asda's market share has fallen to 12.5pc from 13.6pc a year earlier and raises the risk that Asda could soon drop out of the top three largest supermarkets in the UK. Asda was taken over by private equity giant TDR Capital and the Issa brothers in February 2021. Since then, poor performance has chipped away at the group, taking its share Britain's grocery market from 14.8pc to the current 12.5pc. Rival Aldi has narrowed the gap with Asda over the past year, according to Kantar, rising from a 10.3pc share to an 11pc share at the end of March. The German discounter overtook Morrisons as the UK's fourth largest grocer in September 2022. Clive Black, a Shore Capital analyst, said: 'At this rate, it wouldn't be that far out before Aldi would become the number three in the UK.' He said it was concerning that a recent push to slash prices at Asda 'doesn't look like it has changed the momentum whatsoever'.
