FoodManufacture.co.uk spoke exclusively to Clive Black from city analyst Shore Capital to investigate. Three months after the UK’s decision to leave the EU, will the Brexit vote still have an effect this month?
Morrisons had been reducing costs ahead of its half year trading update. Black said the business was under very good management and had a robust setup. He said “I think we’re going to see quite a good, robust half from Morrisons.”
Meanwhile, dairy producer Dairy Crest could report £57.5M profit over the past 12 months. Black said its brands were expected to perform well – especially cheese brand Cathedral City. The company’s success in the spreads market meant that UK farmers could expect to be a paid more.
Black said: “All in all, I think another good, sound, period of trading for Diary Crest. With the dairy now disposed to Muller, I think the future is bright.”
Strong global sugar market
ABF is also due to report a trading update this month, and the company is expected to report “resilient trading”. Boosted by the weak pound following the Brexit vote, and the strong global sugar market, ABF could have its expectations upgraded with Shore Capital this month.
Meanwhile, you can still listen to the September edition of FoodManufacture.co.uk’s podcast Next Month’s News. This month, the focus fell on the future of the 100,000-plus EU nationals working in the UK’s food sector, and the likelihood of increasing production costs.
Expected trading updates in September
- Dairy Crest
- Associated British Foods