Jamaican food-and-drinks manufacturer Seprod has sold its biscuits unit International Biscuits Limited. The biscuits business makes products under brands including Butterkist and Snackables. It also manufactures products for other brand owners, such as Ovaltine and Miss Birdie. The financial terms of the transaction and any information about the buyer were not disclosed. Just Food has contacted Seprod for more details. In a stock-exchange filing, Seprod said the disposal aligns with its “portfolio opti ...

Core Viewpoint - Associated British Foods (ABF) is considering a potential demerger of its food operations from its retail business, Primark, to enhance long-term governance and focus on maximizing value for both segments [6][9][25] Group 1: Financial Performance - ABF reported an operating profit of £1.48 billion for the year, with the retail segment, Primark, contributing £1.12 billion [4] - The group generated total sales of £19.46 billion, with Primark accounting for £9.5 billion (approximately 48%) of this total [5] - Primark's sales increased by 1% year-on-year, while like-for-like sales fell by 2%, indicating challenges in the UK and continental European markets [14] Group 2: Strategic Review and Potential Split - The management is conducting a strategic review that may lead to the separation of Primark from its food interests, which include grocery brands, sugar refining, and agri-food businesses [6][7] - George Weston, ABF's CEO, expressed hope to continue leading the food businesses if a split occurs, emphasizing the need for better scrutiny of the food segment [3][9] - Analysts have noted that there is compelling logic behind a potential split, although questions remain about the timing amid current trading conditions [12][13] Group 3: Food Business Outlook - ABF's food division has experienced mixed results, with revenue and operating profits from the grocery segment declining, while brands like Twinings and Ovaltine have shown consistent performance [16][21] - The company anticipates holding adjusted operating profits in its grocery and ingredients segments at similar levels to the previous year, with a cautious outlook for the sugar business [18][19] - Management sees potential for growth in its food assets, particularly in international grocery brands and the ingredients sector, with significant capital investment directed towards food [20][21][23] Group 4: Market Perception and Analyst Insights - Analysts have raised concerns about whether the consideration of a split is driven by strength or weakness in the business [13] - There is a belief that separating the food and retail segments could allow each to pursue more focused growth strategies, as the current conglomerate structure may not be optimal [24][25] - The potential split is viewed as a strategic move to enhance operational focus and capitalize on the strengths of each business segment [25]