Associated British Foods plc (ABF) 2024年年度報告「LSE」.pdf

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1、Annual Report 2024Strategic report1Introduction3Chairmans Statement5Chief Executives Statement8Our strategy and business model12Key performance indicators14Operating review14Retail22Grocery28Ingredients34Sugar40Agriculture44Financial review48Section 172 and our stakeholders54Responsibility66Climate-

2、related Financial Disclosures(TCFD)78Principal risks and uncertainties87Viability statement and goingconcernGovernance88Chairmans introduction90Board of Directors92Corporate governance matters111 Directors Remuneration Report128 Directors Report131 Statement of directors responsibilities132 Independ

3、ent Auditors Report140 Independent Assurance StatementFinancial statements142 Consolidated income statement143 Consolidated statement ofcomprehensiveincome144 Consolidated balance sheet145 Consolidated cash flow statement146 Consolidated statement ofchanges in equity148 Material accounting policies1

4、54 Accounting estimates andjudgements155 Notes forming part of thefinancialstatements211 Company financial statements218 Progress report219 Glossary220 Company directoryProgress made in 2024Group revenue20.1bn(2023:19.8bn)Adjusted operating profit*1,998m(2023:1,513m)Gross investment*1,281m(2023:1,17

5、1m)Basic earnings per share193.7p(2023:134.2p)Operating profit1,932m(2023:1,383m)Profit before tax1,917m(2023:1,340m)Adjusted profit before tax*1,957m(2023:1,473m)Adjusted earnings per share*196.9p(2023:141.8p)Net cash before leaseliabilities*1,044m(2023:895m)Net debt including lease liabilities*2,0

6、21m(2023:2,265m)Return on average capital employed*(ROACE)18.1%(2023:13.6%)Dividends per share(including special dividend)90.0p(2023:60.0p)Women in the workforce57%(2023:55%)Number of employees andnumber of countries138,000/56(2023:133,000/55)ABF Group scope 1&22,868 kt(2023:2,834 kt)Primark number

7、of stores and selling space451/18.8m sq ft(2023:432/18.2m sq ft)*Alternative Performance Measures(APMs)as defined on pages 206 to 210.Front cover images:Primarks store on Wenceslas Square,Prague;and a farm inthe Primark Cotton Project inIndiaOur purpose is to provide safe,nutritious andaffordable fo

8、od,and clothing that is great value for money.We take a long-term,patient approach to drive sustainable growth and cash generation across our portfolio of food and retail businesses to create value for all stakeholders.This aligns with our approach to sustainability and sustainable supply chains,whe

9、re we focuson what matters and where we can makea difference.This year,we have continued to invest across the Group to deliver on these aims.Investing for tomorrow Delivering todayAssociated British Foods plc|1|Annual Report 2024This year all our material responsibility disclosures areincluded in th

10、is report.For detailed information relating toour responsibility activities during 2024,please visit our website www.abf.co.ukA Jordans Farm Partnership farm inHampshire,UKRetailPrimark is a fast-growing,international value retailer.It is one of the largest andfastest-growing clothing retailers inEu

11、rope,the market leader by volume inthe UK and has a growing presence in the US.It has 451stores in 17 countries and more than82,000 colleagues.Revenue9,448m47%(2023:9,008m)Adjusted operating profit1,108m55%(2023:735m)Read more on page 14GroceryGrocery comprises a large and diverse portfolio of both

12、international brands and regionally-focused businesses,with leading positions in markets acrossthe globe.It employs almost 17,000people.Revenue4,242m21%(2023:4,198m)Adjusted operating profit511m26%(2023:448m)Read more on page 22IngredientsIngredients comprises yeast and bakery ingredients as well as

13、 a portfolio of specialty ingredients focused on enzymes,precision extraction,health and nutrition and pharmaceutical delivery systems.Revenue2,134m11%(2023:2,157m)Adjusted operating profit233m12%(2023:214m)Read more on page 28SugarABF Sugar produces a range of sugar andother products from sugar can

14、e,sugarbeet and wheat inAfrica,theUKand Spain.Revenue2,529m13%(2023:2,474m)Adjusted operating profit199m10%(2023:179m)Read more on page 34AgricultureAB Agri is an international agri-food business.We produce speciality feed ingredients,premix and compound animal feed.We also have an integrated dairy

15、business in the UK.Revenue1,650m8%(2023:1,840m)Adjusted operating profit41m2%(2023:41m)Read more on page 40Our operating businessesAssociated British Foods plc|2|Annual Report 2024The Group delivered significant growth in margin and profit in this financial year as inflation eased and market conditi

16、ons stabilised after the disruption of recent years.The year also brought an increase in revenue as a resultofgood growth in sales at Primark and many of our food businesses.Group revenue increased accordingly to 20.1bn,4%higher thanthe previous year atconstant currency and 2%higher atactual exchang

17、e rates.Primarks sales increased due to its rollout of new stores inbothEurope and the US and consistent focus on its value proposition.InGrocery,both our leading international brands and our US-focused brands performed well with astute marketing and notable new product launches.Our yeast and bakery

18、 ingredients business,AB Mauri,delivered higher sales in Ingredients,while Sugar sales were strong against a previous year impacted by poor growing conditions in the UK.Sales inAgriculture fell due tosoft market demand.This margin improvement across the Group followed the restoration of some normali

19、ty inour markets and good execution by our businesses.It was particularly pronounced at Primark where supply chain costs fell year-on-year following the previous years decision not to pass the full cost ofinflation on to the customer.Similarly,lower input costs supported higher margins in Grocery an

20、d in Ingredients.Sugar profitability was also well ahead on much improved year-on-year production in the UK despite lower European prices impacting performance as the financial year closed.Improved margin inAgriculture offset lowerrevenues.The strong margin led to a substantial year-on-year increase

21、 inGroup adjusted operating profit to 1,998m,an increase over the previous year of 32%at actual exchange rates and 38%atconstant currency.Adjusted profit before tax rose 33%to1,957m and adjusted earnings per share increased by39%to 196.9p.Gross investment increased 9%to 1.3bn as we invested further

22、in both Primark and our food businesses.Primarks investments were centred not only on new stores but also on technology toimprove capabilities needed to drive growth.Wealso invested inenhanced production capacity for our Australian bread business,for our enzymes and yeast extraction plants in our sp

23、ecialty ingredients division,and for our Tanzanian sugar business expansion.Wecompleted some modest acquisitions in the year,principally for our Grocery and Ingredients businesses.Capital structure and shareholder returnsOur capital allocation policy is for the Groups financial leverage,expressed as

24、 the ratio of total net debt including lease liabilities to adjusted EBITDA,to be well under 1.5 times whilst financial leverage consistently below 1.0 times may indicate a surplus capital position.Surplus capital may be returned to shareholders by special dividends or share buybacks.During the fina

25、ncial year we continued our share buyback programmes.We completed the outstanding amount from ourfirst 500m share buyback programme commenced in the previous financial year.We subsequently initiated our second 500m share buyback programme in November 2023,which we completed in August 2024.We then ex

26、tended this programme by a further 100m,which is now complete.CHAIRMANS STATEMENTInvesting for tomorrowDelivering todayAssociated British Foods plc|3|Annual Report 2024The Group had very strong free cashflow in the year,generating1,355m.Therefore,at the end of the financial year the financial levera

27、ge ratio was 0.7x times.The Group continues to prioritise investment in its businesses and we expect to maintain investment in the medium term at a level in line with last years level.Nevertheless,given the outlook for the Group,the strength ofthe balance sheet and the underlying cash generation of

28、the business,the Board has decided to continue to return additional capital to shareholders.Therefore,the Group will continue with abuyback programme,targeting anadditional amount of 500m over the next 12 months.In addition,the Group is declaring a special dividend of 27.0p pershare.The Board is pro

29、posing a final dividend of 42.3p per share,which together with the special dividend will be paid on 10January 2025 to shareholders on the register on 13December 2024.Taken with the interim dividend of 20.7p per share,the total dividend equates to 90.0p per share,an increase of 50%onthe total dividen

30、d of 60.0p in 2023.Our commitment to good businessThe Board has ultimate responsibility for overseeing business practices and this Group has a clear sense of social purpose.Wework hard to provide safe,nutritious and affordable food andgood quality,affordable clothing to millions of customers worldwi

31、de every day.Only if we do these well should we makea profit.So our approach to ESG and supplychains is aligned to our long-term and patient approach tovalue creation.This year we made further good progress on decarbonising Sugar in the UK.We completed further improvements to water treatment at our

32、yeast and bakery ingredients business.Primark also made significant progress in reducing its environmental footprint as well as helping its suppliers work towards the same objective.We are very clear in our approach to sustainability,focusing onwhat matters,doing what needs to be done on reporting b

33、utbalancing this with obtaining an acceptable commercial return.BoardIn a year notable for Board succession planning,I would like tostart by thanking Wolfhart Hauser for his wise and perceptive counsel.Wolfhart stepped down on 18January 2024 after nine years onthe Board and his service to the Compan

34、y was much appreciated.Kumsal Bayazit Besson joined as a non-executive director on 1December 2023 and was duly appointed a member of the Audit and Remuneration Committees.More recently we welcomed Loraine Woodhouse as anon-executive director with effect from 1October 2024.Loraine brings extensive ex

35、perience of financial disciplines in retail,foodand property.She became a member of the Audit and Remuneration Committees on appointment and will chair the Audit Committee from 24April 2025 when Richard Reid reaches nine years tenure as a non-executive director.OutlookPrimark is targeting mid-single

36、 digit sales growth in 2025 as we continue to execute our store rollout programme in our growth markets in Europe and the US and to focus on like-for-like sales growth in our more mature markets.This will be supported by investment in initiatives across product,digital and brand.We expect adjusted o

37、perating margin to remain broadly in line with this years level,as gross margins stabilise and we step up investment to drive sustainable growth.Over the medium and long term,we continue to have significant white space opportunities in our growth markets.We are targeting our store rollout programme

38、to contribute around 4%to 5%per annum to Primarks total sales growth for the forseeable future.In Grocery,we will continue to drive sales momentum,underpinned by increased marketing investment.As expected,the strong performance in our US-focused businesses during 2024 began to normalise towards the

39、end of the year and we expect to see the full year effect in 2025.In Ingredients,we expect continued growth in yeast and bakery ingredients and improved growth in speciality ingredients.In Sugar,as previously announced,we expect the reduction in European sugar pricing in Q4 2024 to impact performanc

40、e in our sugar business significantly in 2025,with adjusted operating profit for the overall Sugar segment expected to be in the range of 50m to 75m.However,we expect profitability to recover in 2026 to be more in line with 2024,as a result of the lower beet prices that have been contracted and a re

41、balancing of supply and demand in the market.In Agriculture,we expect some improvement,particularly as our grain trading business recovers in the UK.The Group is well positioned for the medium term,supported by strong cash generation and good momentum in our Retail and food businesses.Michael McLint

42、ockChairmanCHAIRMANS STATEMENT CONTINUEDAssociated British Foods plc|4|Annual Report 2024“We are very clear in our approach to sustainability,focusing on what matters,doing what needs to be done on reporting but balancing this with obtaining an acceptable commercial return.”This has been a year of v

43、ery significant progress both operationally and financially with new records set for profits,free cashflow,and capital investment.It was particularly pleasing that four of five divisions grew profits,and all five made good strategicprogress.Of course,some of this strong performance was due toareturn

44、 to something like normality in our markets and supplychains,and by inflation easing which in turn supported adistinctif fragile improvement in consumer behaviour.Self-help contributed too,with our steadily increasing levels of investment funding more research and development,more digital and techno

45、logy innovation,and more marketing as well as physical capital expenditure in production capacity and efficiencies.That said,the outturn came with a sting in the tail as the year came to close:short-term volatility in European sugar prices is taking its toll on the profitability of the European suga

46、r industry and we are not exempt from that.We expect this impact to be relatively short-lived and our sugar businesses and the Group asa whole remain very well positioned.So,Group revenue increased to 20.1bn,4%higher than theprevious year on a constant currency basis.Adjusted operating profit increa

47、sed to 1,998m,higher by 38%than theprevious year.Adjusted earnings per share increased 39%to196.9p.Gross investment was 1.3bn.Last year I noted that we had more to do to rebuild Group margins and we have made very good progress.We are nowback to margins that are higher than those we saw inpre-pandem

48、ic times.It has been a somewhat bumpy road for everyone but the strength of the Group has shown through.Primarks margin recovery to more normal levels after years ofdisruption isparticularly pleasing,although we never doubted that itwould return to these levels.And that despite thefact there wasstil

49、l some volatility in supply chains with the closure oftheSuez canal and disruption in some of our sourcing locations such asBangladesh.Primarks low-cost model is as strong as ever.We continue to offer the lowest prices to consumers in each of our markets and this remains our core operating principle

50、.With the normalisation of input costs,the era of needing to raise prices to cover inflation is now behind us.Our product ranges,curated by our exceptionally talented buying teams,were characterised by our relentless focus on value and desirability.Our licence and collaboration development continues

51、 to grow.Chief Executives StatementAssociated British Foods plc|5|Annual Report 2024Our opportunity for sustainable compounding growth remains substantial.We are delivering significant growth in our target growth markets such as Spain,Italy,France,Eastern Europe and of course the US.In our home mark

52、ets of the UK and Ireland we do not expect to grow as fast given their maturity,but they remain hugely important to usand they are where we trial new concepts and test and build innovation in product and technology.We are particularly delighted to celebrate our 50th anniversary in the UK this year,a

53、milestone ofreal note marked by our intention to invest 100m more in the UK high street.I am very proud ofhow Primark has developed since 2005 when our acquisition of Littlewoods gave Primark presence and scale.Nearly 20 years on we still have plenty to do in the UK.More broadly,Primarks strategic d

54、evelopment is still exciting.We are focusing on individual country strategies,refreshing our brand and launching brand campaigns in countries where needed for different reasons,namely in Germany to reposition the brand and in the US to increase brand awareness.In Germany it is tooearly to declare su

55、ccess but the business feels significantly better than it did 12 months ago.Our business in the US now has 27 stores and,more importantly,is profitable.From a digital perspective,we increased our customer database significantly,which has contributed to a 23%increase in web traffic.This year also saw

56、 a significant milestone in our digital deployment with our decision to roll out Click&Collect across Great Britain.And our regions of expansion are increasing,as weadd countries in Eastern Europe and new states in theUS whilewe have also announced our intention toopen stores inthestates that make u

57、p the Gulf Cooperation Council.Thereisalot of white space tobeexcited about.Grocery also had an excellent year and delivered a very strong improvement in financial performance despite significant investment in new product development and targeted marketing campaigns.We directed much of this investme

58、nt at our International Brands such as Twinings,Ovaltine,Pataks,Blue Dragon,Jordans and Mazzetti and at our US-focused brands such as Mazola and Fleischmanns.Twinings and Mazola,to pickout just two,are clearly benefitting,Twinings in its growth markets and Mazola through a stronger market position a

59、nd greater consumer affinity.In general the operating environment has allowed us a welcome return to focusing on long-term growth rather than on inflation and supply chain disruption.Our businesses in Australia and New Zealand have been engaged in some of the most interesting activities.They have al

60、so had probably the most challenging consumer conditions this year that we have seen across our markets.However,they also have some of the best long-term fundamentals of any Western markets and so we are investing there for the long-term and have completed,or are in the middle of completing,some of

61、theGroups bigger capital projects.Weare also evolving our Australian portfolio through acquisitions.Ingredients continued to perform very well indeed,with very good growth in sales and profits led by AB Mauri,our yeast and bakery ingredients businesses.To put the performance incontext,it feels as th

62、ough the business is at levels ofprofitability which are both deserved and sustainable.Thebusiness is making great advances on numerous fronts whether it be innovation in bakery ingredients,growth in non-bakers yeast,including through acquisition,or delivery of bespoke customer solutions in the vari

63、ed markets in which we operate.ABFI,our portfolio of specialty ingredients businesses,had a mixed year from a short-term trading perspective as it continued to wrestle with customer destocking but that phase looks to be nearing its natural end.We continue to invest in capability with aview to accele

64、rating the long-term growth potential that these businesses undoubtedly have.We increasingly think of Sugar as two sets of businesses.Wehave significant growth opportunities in Africa,and a source of cash generation in Europe.There was a third:we sold our remaining sugar factories inNorth China in t

65、he course of the year after some 25 years.Across those years,our China sugar businesses have been very profitable for us.This was a year when profit improved strongly in the Sugar segment,now the fourth successive year of profitable growth.European sugar initially benefitted from higher prices and g

66、ood beet crops but as the year progressed it became evident first that sugar prices were falling and then that they were falling significantly.So,we ended the year with lowered expectations and the outlook for next year is challenging.However,we are confident our European businesses will bounce back

67、 in the 2026 financial year and wecan already see drivers of that improvement.Our sugar businesses in Africa continue to develop.That continent has and always will be subject to short-term bumps caused byweather and currency,but we are building a great setofbusinesses there and I have never been mor

68、e confident intheirlong-term potential supported by strong fundamentals,great brands and routes to market,and significant improvementopportunities.Revenues have continued to fall in our Agriculture segment withlower prices and volumes prevalent in our UK and China compound feed markets.The biggest c

69、hallenge however wasthe impact of poor weather in the UK which hurt sales atFrontier,our joint venture specialising in arable farm inputs andgrain marketing.However,we are making progress on developing a suite of agricultural technology businesses that should operate at better margins.Our dairy busi

70、ness,built around a combination of established and recently acquired businesses,performed well.AB Vista,our international feed additives business,continued to broaden its product range andAB Neo,our animal starter feed business,had a good year.We will continue to build these innovative businesses.CH

71、IEF EXECUTIVES STATEMENT CONTINUEDAssociated British Foods plc|6|Annual Report 2024ESGThis year saw us move towards combined financial and ESGreporting.Our financial and ESG investments have always been closely aligned and it makes sense to report both activities inthis way,particularly as providing

72、 transparency will require theprovision of more data.This Group can be proud of what weare achieving,and we endorse transparency as a means ofdemonstrating progress while remaining clear that reporting should not become an end in itself nor a distraction from achieving real progress.We made further

73、progress in decarbonising UK sugarproduction.British Sugar is the largest contributor to the entire ABF Group Scope 1 footprint.A major energy reduction project at Wissington in the UK has cut onsite energy usage sharply,with emissions reduced by 30,000 tonnes of carbon ayear.Further energy-reductio

74、n measures have taken place atother sugar sites.Taken together,this work is delivering a substantial reduction inBritish Sugars Scope 1 and 2 emissions against our 2017-2018 baseline.Primark has also made great progress in cutting total GHG emissions.Scope 3 emissions fell year on year by 12%and by

75、0.6%against the 2018/19 baseline.Primark has been working with its supplier factories on programmes focused on energy use and efficiency to cut Scope 3 emissions.Given Primark isgrowing sales and activity year-by-year,this year has been oneofachievement.Energy-saving measures in store and procuremen

76、t of renewable and low-carbon electricity meant Scope 1 and 2(market based)emissions fell by 21%in the year and by 52%against the 2018/19 baseline.AB Mauri has continued to improve the way it recycles and manages effluent water.The multi-year investment programme for this work reached$120m this year

77、.Some 84%of the water we use in the production of yeast is now treated and returned safely to the environment.Most of this work is done so this project will now progress without needing to be on the Groups list ofpriority issues.Looking further ahead,we believe there is a need to prioritise sustaina

78、ble food production given the need for greater food security,but we have to achieve that sustainable food production while reducing GHG emissions in the agricultural sector andagriculture in turn has to conserve the environment.Ouragricultural technology and consulting businesses are actingwith thes

79、e goals in mind.InvestmentAs I mentioned,we have stepped up our investment to recordlevels and we expect it to remain at similar levels in themedium term.This of course includes the continued expansion at Primark but also some very interesting capacity additions inourfood businesses.In 2025,we will

80、see the completion of anumber of important multi-year projects inour food businesses and Ilookforward to seeing them contribute to the growth oftheGroup.We have also made a set of interesting acquisitions to help develop our food portfolios.Investment remains the priority ofour capital allocation po

81、licy but we remain diligent about how we deploy that investment.PeopleThe major part of the years strong showing is due to the excellent work of our people.They remained disciplined and focused on strong execution and performance improvement,taking full advantage of the more stable environment.Our i

82、mprovement in Group margins is due in large part to their work.In a group of this size people inevitably come and go.Id like towelcome new arrivals and thank those departing for their contribution.In particular I want to single out Fabienne Saadane-Oaks who leaves after nine successful years with us

83、,growing our specialty ingredients division with a clear sense of purpose.Ithank her for her considerable contribution delivered with intelligence and energy.Looking aheadLooking ahead,the Group is well-positioned.Strong cash flow generation is enabling disciplined capital allocation to growth oppor

84、tunities across the Group and we have ongoing multi-year projects to deliver our focused sustainability priorities.We believe our long-term,patient investment approach will deliver strong returns and continue to create value for all stakeholders.George WestonChief ExecutiveAssociated British Foods p

85、lc|7|Annual Report 2024“In 2025,we will see the completion of a number of important multi-year projects inour food businesses and Ilookforward to seeing them contribute to the growth oftheGroup.”Our purpose is to provide safe,nutritious and affordable food,and clothing that is great value for money.

86、OUR STRATEGY AND BUSINESS MODELUnderstanding our businessAssociated British Foods plc|8|Annual Report 2024This purpose defines our culture and values.As a Group,we have a clear sense ofoursocial purpose.We work hard to provide safe,nutritious and affordablefood and good quality,affordable clothing t

87、o millions of customers worldwide every day.Only if we do these things well should we make a profit.Across all of our businesses,we live and breathe our values through the work we do every day,from how we drive our strategies,how we invest and how we deliver for our customers and consumers.It is als

88、o how we approach sustainability,with afocus on outcomes.Our people are key to driving the necessary innovation and implementing the action required.Itis only through their skills and capability that wewill make necessary and timely progress.Ouremployees tend to stay with us for a long time,building

89、 exciting careers that help them fulfil their goals at work,at home and in the community.Webelieve that most people are inherently good and that with encouragement,engagement and support they will do the right thing in the right way.Our high standards of integrity enable us to drive astrong culture,

90、recognising that acting responsibly is the only way to build and manage a business over the long term.We pride ourselves on being a first-class employer,working actively to develop our people and create opportunities for progression.Ourbusinesses thrive on the diversity of their people,so we are inv

91、esting in programmes to helpremove barriers to talent.We want to attract,recruit and retain the best people,ensuring they are stimulated by the jobs they do and equipped with the skills they need tosucceed.Learn more online at www.abf.co.ukWe proudly promote and protect aculture of trust,fairness an

92、d accountability that puts ethics first.We work with others to leverage ourglobal expertise forlocal good.From the products we make,to the way we preserve the resources we rely on,we are always learning and incorporating better practices.We strive to protect the dignity ofeveryone within andbeyond o

93、uroperations.Associated British Foods plc|9|Annual Report 2024.it informs our Group strategy.Our strategy is to drive sustainable,long-term growth andcash generation across our portfolio of food and retail businesses to createvalue for shareholders and other stakeholders.We take a long-term,patient

94、investment approach to create sustainable growth.We aim to build and acquire long-duration growth businesses that will create value anddeliver strong returns.Our portfolio of clothing retail and food businesses is wellpositioned for long-term growth through a focus on categories and sectors with res

95、ilient market fundamentals and geographies with favourable demographics.We select opportunities where we can create a competitive advantage to build leadership or niche market positions,typically in moderate-scale categories.Our investment decisions are influenced by strategic patience and we believ

96、e our highly diversified portfolio,across different business activities and geographies,enables discipline and creates breadth in our opportunities for growth.We have designed a devolved operational leadership model that effectively manages the breadth,mix and long-term nature of our businesses.Our

97、businesses are typically highly cash generative,whichenables continuous reinvestment.We are investing in our well-established,growth-engine businesses to driveexpansion into new markets and adjacencies,while nurturing a substantial portfolio of smaller,early-stage businesses which have the potential

98、 to be the next generation of long-duration growth drivers.Our ability toinvest is strengthened by having several mature,lower-growth businesses within the Group that continue todeliver good profitability and cash generation.Across our portfolio,we are investing to accelerate growththrough effective

99、 marketing,innovative new product development and enhanced digital and technology capabilities.This is underpinned by continuous investment to expand our manufacturing capacity and add new capabilities.We are also investing to deliver our ESG priorities based on the most material risks,opportunities

100、 and impacts to the Group.In particular,this includes decarbonisation and social factors within our supply chains.We supplement organic growth with investment invalue-creating acquisitions that bring new opportunities and capabilities.We make disposals when judged to be thebest route to creating sha

101、reholder value.Our investment approach is grounded in conservative financial management and we maintain a resilient balance sheet.This ensures long-term financial stability and createsthe flexibility to fund opportunities as they arise.Our disciplined approach to capital allocation,using risk-adjust

102、ed hurdle rates,drives strong returns on capital.Learn about our strategic performance inour KPIs on pages 12 and 13Dividends per share(including special dividend)90.0p(2023:60.0p)Disciplinedcapital allocationto drivestrong returnsConservativefinancial managementand resilientbalance sheetStrongcash

103、generationenables continuous reinvestmentInvesting todrive growthand createcompetitiveadvantageBuildingand acquiringlong-durationgrowth businessesLearn about how we reward Executives for strategic progress in the Remuneration Report on pages 111 to 127Learn about the strategic riskswe manage against

104、 on pages 78 to 86rigourRespectingcollaborationActingwitheveryonesthroughwithDeliveringdignityProgressingintegrityOUR STRATEGY AND BUSINESS MODEL CONTINUEDUnderstanding our business continuedAssociated British Foods plc|10|Annual Report 2024.which is realised through our business strategies.RetailPr

105、imark is a fast-growing,international value retailer with adifferentiated customer proposition delivered through adigitally-enabled,store-led model.It has significant white space to continuously expand its store footprint in existing andnew markets.We win with customers through our strong brand,know

106、n for unbeatable prices and great quality essential clothing and fashion.We target a wide customer base across womens,mens and kidswear and we are building strong positions in categories such ashome and beauty.We continuously evolve our ranges to meet customer needs,including through collaborations

107、and licensing partnerships.Theexecution of our strategy in each market is adapted to reflect thesize of the white space opportunity,the maturity of the store portfolio and local customer needs.We aim to offer a unique store experience by finding the right spaces in theright locations and creating ex

108、citing retail destinations.We also use effective digital customer engagement as a key driver of footfall,including our website,stock checker and increasingly Click&Collect,and social media platforms.We work to maintain an ethical and responsible supply chain,and we focus on driving efficiencies and

109、cost savings across our supply chain,store portfolio and central operations.We target strong financial returns and cash generation.GroceryOur strategy is to drive sustainable growth across our large and diverse portfolio of both international brands and regionally-focused businesses.We will continue

110、 to deliver growth organically and through carefully selected acquisitions.Our international brands,Twinings,Ovaltine,Pataks,Blue Dragon,Jordans and Mazzetti,have a long runway for growth.Our focus ison reaching new consumers in existing markets,expanding into new markets and broadening our offering

111、 through new product development.We are investing in effective marketing and innovation to drive category growth and build market share.We benefit from our centralised manufacturing footprint for these brands.In our regionally-focused businesses in the UK,North America,Australia and New Zealand,our

112、focus is on driving strong cash generation over the long term.We adopt bespoke strategies to win in local markets.This includes investing in marketing to maintain brand health and support our strong local market positions.IngredientsOur strategy is to drive sustainable growth in Ingredients withinfo

113、cused categories,including yeast,bakery ingredients,enzymes,precision extraction,health and nutrition and pharmaceutical delivery systems.In our yeast and bakery ingredients business,AB Mauri,we are growing our portfolio of products for industrial,craft and retail bakers inourwell-established region

114、s of the Americas,Europe and Asia.Ourfocus is on consistent delivery and innovation for new and existing customers.This is underpinned by strong,insight-led investment in the development of new technologies and ingredients that will meet the changing needs of our customers in different local markets

115、.Ourindividual country businesses are dedicated to their local markets,backed by global expertise in bakery products,technologies and know-how.We are also expanding our portfolio ofspeciality yeast products and technologies for other industries,including alcoholic beverages.In our specialty ingredie

116、nts portfolio,ABFI,we are using science and technology to create value-added,innovative speciality ingredients to serve the food and beverage,health and nutrition and pharmaceutical industries,as well as markets such as animal feed and certain industrial segments.Our strategic focus is on niche cate

117、gories where we can have a differentiated proposition using platforms such as enzymes and other industrial biotechnology,precision extraction and synthetic chemistry.As well as building on these platforms,we are broadening our geographical exposure to our focused markets.We will continue to grow bot

118、h through acquisitions and organically,including geographical expansion,innovation and new applications.SugarOur strategy is to drive sustainable long-term growth in Africa,building on our strong market positions,while delivering good returns in our European businesses over the cycle.In our African

119、markets,particularly Zambia,Malawi and Tanzania,growth in sugar consumption is expected to be driven by both population and economic growth.We have strong,attractive consumer brands and continue to build effective routes to market.We are investing to add production capacity in our growth markets,suc

120、h as Tanzania and Zambia.We also continue to improve our operational effectiveness and strengthen our agricultural practices,which will help to increase cane yields and reduce the impact from severe weather conditions.Over time,we have opportunities to expand our portfolio of co-products,such as pot

121、able alcohol and electricity.We are investing to deliver our ESG priorities,which include sustainable agricultural practices as well as social factors.In Europe,our strategy is to deliver good profitability and cash flowgeneration through the cycle.We do this through long-term customer relationships

122、,which are built on the high quality of our products and the security of our supply.We also see opportunities togrow our portfolio of co-products,drive continuous operational efficiencies and to use data and technology to improve yields and profitability for our growers.We continue to invest in the

123、delivery ofour ESG priorities,in particular our decarbonisation programme.AgricultureOur strategy is to build value-added agri-food businesses on the foundation of our experience in our commoditised feed business.We will continue to grow organically and through acquisition.We are expanding our portf

124、olio of innovative,speciality feed ingredients,including feed enzymes and additive products,which wesell globally.We are also growing our integrated dairy business inthe UK,connecting data,services and products in new ways,toprovide insights to help our customers improve dairy farm performance.We co

125、ntinue to strengthen our position as a market leader in premix and compound animal feed in the UK and China.Associated British Foods plc|11|Annual Report 2024.and is delivered by our operating model.We believe the best way to create enduring value involves setting objectives from the bottom up rathe

126、r than thetop down.We make operational decisions locally,because in our experience decisions are most successful when made and owned bythepeople with the best understanding of their customersandmarkets.We employ a devolved operating model across our Retail,Grocery,Ingredients,Sugar and Agriculture b

127、usinesses.Objectives are set fromthe bottom up to create enduring valueLocal teams makeoperational decisions forbetter customer andmarket understandingLocal accountabilitymotivates managementand fosters innovative thinkingESG agenda is shaped bylocalleaders with detailedknowledge and customerinsight

128、sESG factors are integrated into strategy and implemented by trusted employeesCorporate centreshares ideas and bestpracticesContinuous dialogue with business leaders for risk and opportunity overviewSmall corporate centre ensures clear and quick decision makingLearn more online at www.abf.co.ukOur s

129、takeholdersEmployeesSuppliersCustomers/consumersOur value chainSupply chainsOperationsProductsThe Group,or corporate centre,provides a framework for the sharing of ideas and best practice and is in constant dialogue with the people who run our businesses,giving our corporate leaders a comprehensive

130、overview of their material opportunities and risks,enabling collaboration.Communities and the environmentShareholders andinstitutional investorsGovernmentsOur value chainAgricultureSugarIngredientsGroceryRetailOur stakeholdersWe use key performance indicators(KPIs)to measure our progress in deliveri

131、ng the successful implementation of our strategy and to monitor our performance.Financial indicatorsGroup revenueAdjusted operating profit*Adjusted earnings per share*(bn)20 21 22 23 24(m)20 21 22 23 24(pence)20 21 22 23 24Revenue is a measure of businessgrowth.Constant currency comparisons are also

132、 used to provide greater clarity ofperformance.Adjusted profit and earnings measures providea consistent indicator of performance year-on-year and are aligned with management incentive targets.The Groups organic growth objective aims todeliver steady growth in earnings over thelong term.Gross invest

133、ment*Free cash flow*Net cash before lease liabilities*(m)20 21 22 23 24(m)20 21 22 23 24(m)20 21 22 23 24A measure of the commitment tothe long-term development of the business.The free cash flow measure represents thecash that the Group generates from its operations after maintaining and investing

134、inits capital assets.This measure monitors the Groups liquidity and capital structure and is used to calculate the Groups liquidity ratio.Return on average capital employed*Financial leverage*Dividends per share(%)20 21 22 23 24(times(x)20 21 22 23 24(pence)20 21 22 23 24This measure monitors the le

135、vel of return generated by the Groups investment in itsoperating assets.It is also a key part ofmanagement incentive targets.This measure monitors the Groups financial strength toensure long-term financial stability.The Groups organic growth objective aims todeliver steady growth in dividends over t

136、helong term.This included the payment ofspecial dividends of 13.8p,12.7p and 27.0p in2021,2023 and 2024 respectively.*APMs as defined on pages 206 to 210.Each business develops KPIs relevant to its operations.These are monitored regularly.In the case of adjusted operating profit and return on averag

137、e capital employed,weuse them as metrics to incentivise our management teams.KEY PERFORMANCE INDICATORSTracking our progressAssociated British Foods plc|12|Annual Report 202413.913.917.019.820.11,0241,0111,4351,5131,99881.180.1131.1141.8196.96417219301,1711,281875419(84)2691,3551,5581,9011,4888951,0

138、449.59.814.013.618.11.10.70.81.00.713.812.727.0Nil26.743.733.142.3Non-financial indicatorsLost time injuries and lost time injuryrate(%)*Number of employees and number of countriesPercentage of women in workforce0.42%0.38%0.36%0.35%0.38%20 21 22 23 245353535556 20 21 22 23 24 20 21 22 23 24A measure

139、 of the Groups management ofthehealth and safety of its employees thenumber of on-site lost time injuries resulting from an accident arising out of,orinconnection with,on-site work activities and the proportion of the full-time equivalent workforce experiencing alost time injury.Read more on page 58

140、Measure of the scale and diversity of our operations.Reflecting all employees in theGroup with a contract of employment,whether full-time,part-time,contractor orseasonal worker and highlighting the number of countries of operation.Read more on page 59The proportion of our employees that have disclos

141、ed their gender as female/woman inline with the local legislation.Read more on page 60ABF Scope 1 and 2 GHG emissions*Primark Scope 1,2 and 3 GHGemissionsTotal energy consumed and percentage from a renewable source*(000 tonnes of CO2e)20 21 22 23 24(000 tonnes of CO2e)20 21 22 23 24(GWh)56%55%55%58%

142、57%20 21 22 23 24The amount of ABF Group Scope 1 and 2(location-based)greenhouse gas emissions.Read more on page 62&63The amount of Primarks Scope 1,2(location-based)and 3 greenhouse gas emissions.Read more on pages 62&63Total energy used and the proportion ofwhich is from renewable sources.Renewabl

143、e energy is mainly generated on our sites from biogenic sources.Read more on page 62Primark selling space and number ofcountries of operation Total waste generated and percentage sent for recycling in own operations*Total water abstracted in own operations*(000 sq ft)20 21 22 23 24Selling spaceCount

144、ries of operationWaste(000 tonnes)57456057551060984%79%84%83%87%20 21 22 23 24(million m3)20 21 22 23 24These two measures represent theretailspace growth and breadth ofPrimarkspresence.Read more on page 18A measure of the total waste generated in our own operations and the proportion of waste sent

145、for recycling or other beneficial use instead ofbeing sent to landfill for disposal.Read more on pages 64This measure includes water supplied by third parties or from local water resources.Read more on page 64The Group data in this report on our environmental and safety KPIs covered the period 1 Aug

146、ust to 31 July,excluding Primark selling space and number ofcountries of operation and employee numbers.EY has provided limited independent assurance over the 2024 metrics.See page 140 for EYs assurance statement.*Prior year numbers have been represented to reflect where ABF has financial control as

147、 described on page 55.*The 2023 numbers are restated to correct an understatement in steam in the Scope 2 emissions numbers,impacting GHG emissions and energy consumed.Associated British Foods plc|13|Annual Report 2024403346353347392133,425127,912132,273133,487138,2713,3133,0042,9702,834*2,8685,2474

148、,7256,5767,1396,319 53%53%54%55%57%84285979285988022,32921,52420,60321,129*20,69716,2471316,8421417,3021418,1981618,75917Primark is a fast-growing,international value retailer with a differentiated customer proposition delivered through a digitally-enabled,store-led model.It is one of thelargest and

149、 fastest-growing clothing retailers in Europe,the market leader by sales volume in the UK,and has a growing presence in the US.We have 451 stores at the end of 2024,with 18.8 million square feet of selling space,across 17 countries and more than 82,000 colleagues.Our founder,Arthur Ryan,opened our f

150、irst store in 1969 inDublin city centre and this remains the home of our globalheadquarters.Primarks strong brand is known for offering unbeatable prices and great quality essential clothing and fashion.We target a wide customer base across womens,mens and kidswear,aswell as beauty,homeware and acce

151、ssories.Our licensed clothing ranges are with some of the biggest names in entertainment and sport.We offer a unique store experience by finding the right spaces,in the right locations and creating exciting retail destinations.Someof our stores offer additional services including beauty studios,nail

152、 and brow salons,barbers,themed cafes and our vintage clothing concession.We use our digital customer experience to drive engagement and increase footfall in stores.This includes our customer website,our stock-checker facility and our socialmedia platforms.We are expanding our Click&Collect servicea

153、cross all of our stores in Great Britain to give customers theconvenience to order online before collecting their purchasein store.We are committed to high ethical trading standards and we areworking to make more sustainable fashion affordable for everyone through our Primark Cares strategy.This is

154、a multi-year programme focused on giving clothing a longer life,reducing emissions in our supply chain and supporting the livelihoods ofthe people who make Primarks clothes.We maintain a continuous focus on driving efficiencies and costsavings across our supply chain,store portfolio and centralopera

155、tions.Revenue9,448m2023:9,008mActual currency:up 5%Constant currency:up 6%Adjusted operating profit1,108m2023:735mActual currency:up 51%Constant currency:up 51%Adjusted operating profit margin11.7%2023:8.2%Operating profit1,100m2023:717mActual currency:up 53%Return on average capital employed18.7%20

156、23:12.0%Selling Space18.8m sq ft2023:18.2m sq ftScope 1,2(location based)and 3GHGemissions6,319(000 tonnes of CO2e)2023:7,139(000 tonnes of CO2e)Gross investment 530m2023:547mOPERATING REVIEWRetailAbout RetailAssociated British Foods plc|14|Annual Report 2024Primarks sales grew 6%in the year.This re

157、flects a strong performance across our key growth markets,including the US,France,Spain,Italy and Central and Eastern Europe(CEE),as well as growth in our largest market,the UK.We continued to benefit from the relevance of our great-value clothing and the expansion of our product and category offeri

158、ng,including through collaborations and licensing partnerships.We are also successfully executing our store rollout programme across the US and Europe,which is adding profitable new selling space.This years growth reflects investment in recent years to enhance our unique store experience and to incr

159、ease our use of effective digital customer engagement.Most of our key categories performed well this year as we continued to deepen and broaden our product offering in womens,mens and kidswear,while growing our presence in categories such as home and accessories.We believe our expanded product range

160、s are further differentiating our proposition and increasing our appeal to existing and new customers.Growth in womenswear was led by performance and leisurewear,knitwear and nightwear.Our collaboration ranges,including Rita Ora and Paula Echevarra,contributed strongly to growth and we benefitted fr

161、om continued expansion of the Edit collection,our more premium essentials range.Sales of our seasonal summer clothing,as well as footwear,beachwear and swimwear,were impacted by wet weather in the UK and Ireland during H2.Menswear delivered good growth,with particularly strong sales of leisurewear a

162、nd good growth in shirts.We benefitted from our expanded product range,including our premium collaborations via our Kem collection and LA workwear brand,The Stronghold.Licensed sportswear lines with the NBA,NFL and Kappa also performed well.In kidswear,sales of our licensed ranges,including partners

163、hips with global brands such as Disney,the NBA and gaming brands,performed very strongly.Markdowns during the year were managed effectively and we exited the year with good inventory levels.In Spain and Portugal,which accounted for 17%of sales,our sales grew strongly,up 6%.Sales grew 4%in H1 and 7%i

164、n H2.Growth in Spain reflected the sales contribution from space expansion and good execution.We continued to outperform the market,which was relatively flat in the year.In Portugal,sales in H1 were impacted by market challenges,followed by an encouraging improvement in H2.During the year,we opened

165、five new stores in Spain.This included four stores in Madrid,where we now have 12 stores in total.In France and Italy,which accounted for 16%of sales,we had some of the strongest growth,with sales growing 12%in the year.Sales grew 18%in H1 and 8%in H2.Growth includes a strong sales contribution from

166、 new stores and we continued to gain share in both markets.In Italy,overall sales densities continued to be particularly strong.We opened three new stores in France and two new stores in Italy.In our newer markets in Central and Eastern Europe,which accounted for 3%of sales,our sales grew 42%.Sales

167、grew 48%in H1 and 37%in H2.We opened three new stores in the year,including our first store in Hungary,one store in Poland and one store in Romania.Creating employment:Primarks socioeconomic impact across EuropeRetail is the largest private sector employer in Europe and Primark has abigpart to play.

168、Since 2006 we have expanded outside of Ireland and the UK and further into Europe.We now have a presence in 16 markets across the geography,contributing significantly to the economies and communities in whichwe operate.We employ more than 78,000 retail colleagues across these markets,offering opport

169、unities in countries where there are sometimes high unemployment rates.In 2024,our 16 new store openings across the UK,Republic of Ireland and mainland Europe have created almost 3,000 new roles and just under 250 managerial positions.Thesejobs in turn contribute towards economic growth and stabilit

170、y in each community.In addition,in six of our key markets the UK,Republic of Ireland,France,Italy,Spain and Portugal we have invested in excess of 230m in new stores,extensions,relocations and refits.We provide employment opportunities at all levels.Formany people we create pathways for a lifelong c

171、areer.Over the last financial year we have recruited justunder 9,000 colleagues aged between 16-18 and formany of those it will be their first job.We are also an attractive prospect for those who are returning to work after a break from employment.When our Nantes store opened in November 2023,205 of

172、 the 238 hourly paid colleagues recruited were returning to work.As well as investing in new people,we deliver training programmes for our existing colleagues to establish future leaders in our business.We have internally promoted more than 1,900 colleagues across Europe this year.Our impact goes be

173、yond direct employment and investment.As we continue to grow,we will directly andindirectly support thousands of jobs and help boost economic prosperity across sectors from hospitality andconstruction to warehousing and transportation.Research carried out by Public First and published in theUK this

174、year showed that Primark contributes 2.6bn to the UK economy and supports 54,000 jobs.Similarly,in France another commissioned study found that wecreate an average of 0.7 additional local jobs for everyjobin store.Operating reviewAssociated British Foods plc|15|Annual Report 2024Primark colleagues a

175、t our store in Lanzarote,SpainUK spotlight:Opportunities in our biggest market2024 marked 50 years of Primark on the great British high street.The UK isPrimarks biggest market,with 194 stores and over 30,000 retail colleagues,and it continues to create significant opportunities for us.While our busi

176、ness is growing internationally,Primark in the UK remains well-established as a retail anchor on the high street.This is evidenced by our 100m investment in our UK store estatethis year.Our stores are well-placed to meet shopping demand through our high sales densities,wide product ranges and broad

177、mix of shopping destinations nationwide.Shoppers continue toprioritise value,enabling a highly profitable marketposition.Primark is directly responsible for driving footfall to high streets and retail parks,in turn creating aripple effect of economic growth and consumer spending for wider industries

178、.Research carried out by Public First and published in October 2024 showed that 2.3 million people each week cite Primark as the main reason for visiting their localhigh street.Primark continues to respond to widespread consumer demand,even in shopping locations where we do not have an existing pres

179、ence we receive hundreds of requests to open stores each year.This financial year,we opened new stores in Bury St Edmunds and Stockton-on-Tees,which both delivered significant queues on opening day and sales that surpassed expected retail targets.The UK offers an ideal testbed for physical and digit

180、al innovation before we roll out new concepts globally,including investments to improve store efficiency such as expanding our self-service checkouts.As we continue to roll out Click&Collect into all our stores in England,Scotland andWales this will further drive consumer footfall and increase acces

181、s to wider ranges,giving people more reasons to visit us.OPERATING REVIEW CONTINUEDRetail continuedAssociated British Foods plc|16|Annual Report 2024Opening day queueat Primarks new store in BurySt Edmunds,6 March 2024In the US,which accounted for 5%of sales,our sales grew 30%,reflecting continued g

182、ood progress.Sales grew 38%in H1 and 24%in H2.We opened six new stores in the year,including our second store in Florida and our first stores in Virginia,North Carolina and Michigan.We also opened a new distribution centre in Jacksonville,Florida,which will support our continued expansion in souther

183、n states.Recently opened stores performed well and are positively contributing to our overall sales density in the US.Sales in the year were driven by both womenswear and menswear,with licensed products performing particularly well.Primark recently launched its first US marketing campaign in the New

184、 York metro area as we focus on increasing brand awareness with US customers.We continue to execute our store rollout programme,with 14 leases for new stores now signed1,including our first store in Manhattan,New York,which will be our 11th store in New York state.In the UK and Ireland,which account

185、ed for 47%of sales,our sales grew 2%.In the UK and Ireland,like-for-like sales grew 0.7%,reflecting 3.1%growth in H1 and a 1.6%decline in H2.In both markets,challenging weather impacted footfall during H2,particularly in April and June.However,we had a very encouraging start to sales of our Autumn/W

186、inter ranges,with strong like-for-like growth in both markets in the last weeks of the financial year.For 2024 as a whole,like-for-like sales in the UK grew 1.0%,reflecting 3.6%growth in H1 and a 1.3%decline in H2.Primark maintained its market share in the UK at 6.7%2.During the year,we continued to

187、 expand and optimise our store portfolio in the UK and Ireland.In total,we opened three new stores.In the UK,we also extended two existing stores,right-sized one store and relocated two stores.We are now offering a Click&Collect service in 87 stores1 in the UK and expect this to be available in all

188、stores in England,Wales and Scotland by the end of 2025.In our Northern European markets,Germany,the Netherlands,Belgium and Austria,which accounted for 13%of sales,our sales grew 3%.In H1,sales grew 1%and in H2,sales grew 4%.Like-for-like sales grew 6.1%in 2024,with 5.6%growth in H1 and 6.6%growth

189、in H2.In Germany,we restructured our store footprint with three store closures and three right-sizings in the year.The restructuring contributed to strong like-for-like sales in the remaining stores,with much-improved sales densities and profitability,despite industry-wide strike action.Even with th

190、e reduction in selling space,total sales grew in H2.We also launched our first multi-media brand marketing campaign in the country.During the year,we signed leases for two smaller-sized stores in new locations in Germany.In the Netherlands,like-for-like growth was also very strong,benefitting from o

191、ur commercial and operational actions,including the right-sizing of four stores.Overall,Primarks total like-for-like sales grew 1.2%.In H1,like-for-like sales grew 2.1%,driven by the annualisation of last years carefully-selected price increases.In H2,like-for-like sales grew 0.5%,with a positive pr

192、oduct mix benefit more than offsetting the impact of soft volumes,mainly due to unfavourable weather in the UK and Ireland.As expected in our fastest-growing markets such as the US,Italy and France,like-for-like metrics are impacted by the high number of store openings.As at 14 September 2024,we wer

193、e trading from 451 stores across 17 markets,with 18.8m sq ft of selling space.During the year,we opened a total of 22 new stores,closed three stores,extended five stores,right-sized eight stores and relocated two stores,which increased our retail selling space by 0.8m sq ft on a gross basis and by 0

194、.6m sq ft on a net basis.We also made good progress with our store refurbishment programme,completing refits in 23 stores comprising 0.8m sq ft of selling space.We continue to see significant white space opportunities in our growth markets in Europe and in the US and we have a clear roadmap for new

195、store rollouts over the medium and long term to drive sustainable growth.At the same time,we continue to assess expansion opportunities in new markets.We recently signed an agreement with the Alshaya Group to explore the opportunity to open stores in the Gulf Cooperation Council(GCC)markets.We are t

196、argeting our store rollout programme to contribute around 4%to 5%per annum to Primarks total sales growth for the foreseeable future.We are focused on a number of initiatives to drive digital customer engagement,in particular in the UK where we have made the most investment and progress.In 2024,traf

197、fic to our websites increased in all markets and grew by 23%overall.The number of visitors now using the stock checker facility in each market is in the range of 15%to 25%and the total usage increased by 35%in 2024.We believe that the increase in website traffic is being driven by our investment in

198、Search Engine Optimisation(SEO),our CRM database and activity,and our paid digital marketing.In particular,our CRM database now has approximately three million customers.Overall,we believe our increased digital engagement is contributing to higher footfall in stores and overall sales growth.Adjusted

199、 operating profit grew 51%to 1,108m.Adjusted operating profit margin was 11.7%,up from 8.2%in 2023.This margin recovery reflects an increase in gross margin,largely due to lower material costs and reduced realised freight costs,as well as the annualisation of prior year price increases.These benefit

200、s were partially offset by labour cost inflation and an increase in investment in digital and data capabilities,technology and brand marketing to support long-term growth.We expect this investment to continue over the medium term.We continue to focus on driving cost optimisation and efficiencies,inc

201、luding through the store operating model,the introduction of self-service checkouts(SCOs)and energy cost efficiencies.This was another year of significant investment to support future growth,captured within operating expense as noted above,and in the 530m of gross investment in capital projects in 2

202、024.As well as opening new stores in Europe and the US,we made progress with our store refurbishment programme,including the rollout of SCOs and energy-efficient lighting upgrades.We are supporting growth with investment in depots,including new depots and several ongoing automation projects.We have

203、significantly increased our investment in technology,including the capability build to support long-term growth.In 2024,return on average capital employed increased from 12.0%to 18.7%.This primarily reflects the increase in operating profit and a normalisation in net working capital.1.As at 31 Octob

204、er 2024.2.Kantar,Primark market share of the total UK clothing,footwear and accessories market including online by value,52-week data to 14 September 2024.Associated British Foods plc|17|Annual Report 2024New store openings in the year ended 14 September 2024:FranceGrenoble,Grand Place S.C.Nantes,Be

205、aulieu S.C.Rouen,Saint-Sever S.C.Republic of IrelandBrayHungaryBudapest East,Arena MallSpainLorca,Parque Almenara S.C.Madrid,Alcala de HenaresMadrid,Conde de PenalverMadrid,La VaguadaMadrid,Rivas H20ItalyLivorno,Porto a MareTurin,To DreamPolandLodz,Manufaktura S.C.UKBury St.EdmundsTeessideRomaniaTim

206、isoara,Lulius Mall USConcord Mills,Charlotte,NCGreat Lakes Crossing,Detroit,MISmith Haven,Long Island,NYThe Florida Mall,Orlando,FLTysons Corner,Washington DC,VAWoodfield Mall,Chicago,ILYear ended Year ended14 September 202416 September 2023#of storessq ft 000#of storessq ft 000UK1947,815 192 7,725

207、Spain642,587 59 2,390 Germany271,380 30 1,605 France271,352 24 1,203 Republic of Ireland381,184 37 1,165 US271,084 21 873 Netherlands20943 20 1,016 Italy17820 15 747 Belgium8403 8 403 Portugal10401 10 383 Austria5242 5 242 Poland6233 5 197 Romania3107 2 75 Czechia289 2 89 Slovenia146 1 46 Slovakia13

208、9 1 39 Hungary134 45118,759 432 18,198 OPERATING REVIEW CONTINUEDRetail continuedAssociated British Foods plc|18|Annual Report 2024ESG highlights Primark is committed to promoting human rights throughout its supply chains.For over 15 years,itsEthical Trade and Environmental Sustainability(ETES)progr

209、amme has been the cornerstone of this commitment.In2024,Primark conducted over 2,000 social audits,most ofwhich were unannounced,tomonitor compliance with its Supplier Code of Conduct.Witha team of over 130 people across 10key sourcing markets,the ETES programme works across all aspects of human rig

210、hts and environmental due diligence,from strategy and risk assessment to supporting suppliers and their factories in implementing the Supplier Codeof Conduct.The Science Based Target Initiative has approved Primarks near-term target to reduce absolute Scope 1 and 2 greenhouse gas(GHG)emissions and a

211、bsolute Scope 3 GHG emissions from purchased goods and services respectively by50%by 2030 from a 2018/19 baseline.Primarks total Scope 3 GHG emissions,which represent the biggest portion of its footprint,reduced by 12%in 2023/24 compared to 2022/23 and were 0.6%lower than the 2018/19 baseline.Primar

212、k is investing in its Environmental Sustainability Team and in supplier factory efficiency programmes aimed atsupporting GHG emission reductions through targeted training,upskilling,and energy-saving projects.Primarks Scope 1 and 2(market-based)emissions reduced by21%in 2023/24 compared to 2022/23 a

213、nd were52%lower than the 2018/19 baseline.This reduction was achieved through energy efficiency measures in its stores and the procurement of renewable and low-carbon electricity.Considering its planned geographical expansion,Primark expects this reduction to fluctuate in the short-term.Primark has

214、committed to 100%of the cotton in its clothing being either organic,recycled or made from cotton from itsPrimark Cotton Project by 2027.In 2024,57%of its cotton clothing units sold contained cotton that was organic or from the Primark Cotton Project.Through its Primark Cotton Project,the business eq

215、uips smallholder farmers with essential knowledge and skills to drive the adoption of more sustainable agriculture practices.Todate 309,394 farmers have been trained through the programme,across four countries and the majority of these farmersare women.In July 2024,Primark published its Durability F

216、ramework,a set of guidelines for durability testing that can be integrated into its business operations and contributes to the development ofbest practice as no industry standard currently exists.Read more about ESG initiatives at Primark on our website at www.abf.co.uk.Clothes made to last at Prima

217、rkPrimark is committed to giving clothes alonger life by designing and making clothes that are not only recyclable by design,but also more durable.This means creating clear guidelines for how clothes are designed and made.The newly introduced Primark Durability Framework isthelatest step in our jour

218、ney.Inspired by the Waste and Resources Action Programmes(WRAP)Extending Clothing Life Protocol,the framework builds on four years of work.It sets out the durability requirements that all eligible clothes must adhere to,including physical quality tests and a set number of washes across four levels.T

219、hese levels range from five to 45 washes,categorised as minimum,foundational,progressive andaspirational.The framework,which has been embedded into both ourbusiness and our supply chain,exists to give clear guidance to our product teams and suppliers when considering the material,design and developm

220、ent ofaclothing item.Primark has now collected a full years durability data for denim,socks and jersey.This will enable us to build a full product performance baseline and truly understand how each product category is performing on durability.66%ofPrimarks clothing that was tested has passed the asp

221、irational level of 45 washes.The framework is anchored in the principles of continuous improvement which we use across our operations,withthe aim that durability is sewn into the lifecycle ofour clothing.Primarks ambition is to demonstrate to our customers that there is no need for the industry to c

222、harge higher prices for clothes made to last.ESG at PrimarkAssociated British Foods plc|19|Annual Report 2024Primarks jersey pyjamas,which have been tested under the Primark Durability Frameworkto drive footfall in our storesInvesting in digital retailRolling out Click&CollectOur successful trial of

223、 Click&Collect now rolling out across England,Scotland and Wales isshowing how the service enables us to reach new customers.It offers greater product choice andunlocks new opportunities while driving more people into stores.Click&Collect gives our customers the opportunity to browse and buy online

224、before collecting their purchase in store on theirchosen date.Our trial launched in November 2022 in 25stores,offering a selection of kidswear items.In July 2023 itexpandedto another 32 stores,with womenswear added inSeptember2023.Every stage has been monitored and analysed.Our steady approach has g

225、iven us a detailed understanding of customer behaviour and activity to provide confidence that the service complements,rather than competes with,Primark stores.Notonly has it met and in many cases exceeded our targets on basket size,additional spend in-store and the impact on in-store sales,it has u

226、nlocked some new growth opportunities.We estimate four out of 10 customers pick up another basket while they are in-store and the value of that basket is significant in line with the first purchase.And more than a fifth of customers have been back and used the service more than once already.Almost h

227、alf have told us they are visiting Primark more often since using Click&Collect,highlighting the halo effect ithas on footfall.Click&Collect is also enabling existing customers to make purchases they would not have made previously,supporting abusy customer who pops in while on a lunch break,or a cus

228、tomer who makes a purchase after searching for a specific trend online.External data*tells us that around a third of spending has come from people who had not shopped with Primark for at least twoyears.As the roll out continues we see potential beyond the trial categories of womenswear and kidswear,

229、with menswear and selected home and lifestyle products now included as part of thenationwide expansion.The ranges and products offered will continue to be curated to complement the local store offering.*Kantar Worldpanel,June 2024.OPERATING REVIEW CONTINUEDRetail continuedAssociated British Foods pl

230、c|20|Annual Report 2024Packing orders at ourPrimark Click&Collect depot atMagna Park,UKAssociated British Foods plc|21|Annual Report 2024A Primark colleague with a Click&Collect customer at our store inLeicester,UKGrocery comprises brands which occupy leading positions in markets across the globe.In

231、ternational brand businessesTwinings has been blending tea since it was founded in 1706 and its premium teas and infusions are now sold in more than 120 countries.Ovaltine malted beverages and snacks are consumed throughout the day in countries across the globe.Pataks is the original spice blending

232、expert and is recognised around the world for creating authentic Indian food that is quick and easy to prepare.Jordans produces delicious wholegrain breakfast cereals.Blue Dragon offers authentic,simple and convenient ingredients to create delicious dishes from China,Thailand,Japan and Vietnam.Mazze

233、tti is our leading brand ofBalsamic Vinegar of Modena.US-focused businessesWe have some of the leading US,Mexican and Canadian cooking and baking branded products.These include Mazola andCapullo cooking oils and Fleischmanns yeast.In addition,Anthonys Goods is a leading brand of organic and natural

234、ingredients and superfoods which are sold online inthe US.Wealso have a 50%ownership in Stratas Foods,theleading US supplier of packaged oils,margarines,mayonnaise,sauces and dressings for the food service,food ingredients and retailmarkets.UK-focused businessesWe have a broad set of food brands and

235、 businesses focused onthe UK market.Kingsmill produces a range of bakery products for thewhole family.Dorset Cereals award-winning muesli andgranolas are renowned for the quality of the ingredients.Ryvitais the UK category leader in crispbreads.Silver Spoon and Billingtons are our two retail sugar b

236、rands inthe UK.We are also a leading supplier to the Indian,Chinese and Thai foodservice sectors with well-known brands,including Lucky Boat noodles.Australia and New Zealand-focused businessesWe are one of Australia and New Zealands largest food manufacturers.Tip Top is one of the most recognised b

237、rands inAustralia with an extensive range of bread and baked goods.The Artisanal Group is a leading manufacturer and wholesaler ofhigh-quality baked goods.OurDonbusiness manufactures avariety of bacon,ham andmeat products.Yumis produces hommus,vegetable dipsandsnacks and is the leader in the Austral

238、ian market.For a full list of our businesses and brands visitwww.abf.co.uk/our-businesses/a-z-finder.Revenue4,242m2023:4,198mActual currency:up 1%Constant currency:up 4%Adjusted operating profit511m2023:448mActual currency:up 14%Constant currency:up 17%Adjusted operating profit margin12.1%2023:10.7%

239、Operating profit493m2023:402mActual currency:up 23%Return on average capital employed35.8%2023:30.0%Packaging142 kt2023:142 ktRecycled waste86.0%2023:82.3%Gross investment 226m2023:141mOPERATING REVIEW CONTINUEDGroceryAbout GroceryAssociated British Foods plc|22|Annual Report 2024Grocery sales grew

240、4%,reflecting good demand across a number of our leading international brands and regionally-focused businesses,supported by increased investment in effective marketing,strong commercial execution and successful new product launches.Adjusted operating profit margin for the Grocery segment improved t

241、o 12.1%,driving significant growth in adjusted operating profit,up 17%to 511m.The strong margin improvement reflects an easing in input cost pressures,strong performance in our US-focused businesses and much-reduced losses in Allied Bakeries,partially offset by a significant increase in marketing in

242、vestment.Return on average capital employed increased from 30.0%to 35.8%.Our international brand businesses,which include Twinings,Ovaltine,Blue Dragon,Pataks,Jordans and Mazzetti,accounted for approximately a third of total Grocery sales.Twinings had strong sales momentum led by volume growth acros

243、s its largest markets,the UK,US and France.This reflects increased distribution,particularly in the US,strong commercial execution to strengthen in-store visibility and a significant increase in investment and focus on effective marketing.Growth also benefitted from recent product launches,as we con

244、tinue to expand our presence in the wellness category,including our growing portfolio of herbal and infusion teas.In Ovaltine,performance was mixed this year.We continued to drive sales of ready-to-drink(RTD)products in Thailand,in response to the shift in consumer demand from powder products,and we

245、 grew our market share in both categories.1 We are leveraging our strong brand in that market to launch new products,supported by increased marketing investment.In China,sales were impacted by the weaker economy and in Myanmar by the political situation.In Europe,we benefitted from new product launc

246、hes and we had good growth in Africa.We also progressed with the construction of a production facility in Nigeria,which will enable Ovaltine to serve markets across West Africa.Sales of both Pataks and Blue Dragon were broadly flat overall this year with a mixed performance across markets.Jordans sa

247、les were impacted by reduced promotional activity in H1 but had good growth in H2.Our balsamic vinegar business,including the Mazzetti brand,had continued good volume growth.Within our regionally-focused portfolio,our US-focused businesses accounted for approximately 15%of Grocery sales and performe

248、d well.This reflects the strong performance of our market-leading brands,including Mazola and Fleischmanns,supported by improved production capacity.As expected,strong performance in consumer oils began to normalise towards the end of the financial year.Stratas,our joint venture that supplies oils t

249、o the foodservice,ingredients and retail markets,delivered strong profit,albeit slightly below last year.1.Nielsen,Ovaltine share by value of the malt-based and chocolate powder beverages category and the mal-bases and chocolate UHT beverages category respectively for the 12-month period ending 1 Au

250、gust 2024.ACH:Listening to our consumersThis year we have invested in growing anddeepening our US-focused brands relationships with consumers.The people who buy and use our products are our highest priority.By listening to them and understanding their preferences,we have evolved our brands to ensure

251、 they remain consistently relevant to consumer needs.Our Mazola cooking oil brand has continued to tailor itsconsumer communications.For example,core consumers of Mazola include US Latino consumers and we have invested in Spanish language brand campaigns as a result.Significant and impactful content

252、 in media used by these communities has helped Mazola maintain its strong brand awareness and preference.This year wetook further market share and outsold our closest branded competitor in the US by more than 40%.Meanwhile we have been tapping into the trend for home-baking in the US.Since the Covid

253、-19 pandemic,many people have continued to enjoy baking from scratch,helped by the rise of flexible working patterns that enablethem to spend more time at home.Weundertook quantitative and qualitative research into the needs and motivations of these home bakers so we could better understand them.Bas

254、ed on what we found,our Fleischmanns yeast brand team developed a campaign that promoted the benefits of yeast baking,encouraged more people to use it at home and positioned Fleischmanns as the brand of choice for bakers.Thanks to this work we have seen the number of households purchasing Fleischman

255、ns grow by 7%in the last year as well as increasing the amount purchased per shopper by more than 3%.Operating reviewAssociated British Foods plc|23|Annual Report 2024An image from Mazolas Spanish language campaign in the United StatesOur UK-focused businesses,which accounted for approximately a qua

256、rter of Grocery sales,generally performed well.Allied Bakeries had a much-reduced operating loss compared to 2023 as a result of improved sales and operational performance.Silver Spoon delivered strong growth,benefitting from better pricing and a brand refresh.Ryvita made good progress,supported by

257、recent product launches and advertising.We are investing in manufacturing capacity for our Scrocchiarella bakery products in Bradford,UK,to support future growth.Our Australia and New Zealand-focused businesses,which accounted for approximately a quarter of Grocery sales,remained resilient in a chal

258、lenging consumer environment.Our Tip Top bakery business grew well despite consumers trading down due to cost of living pressures.Sales growth in our Don meat business reflected pricing and new product launches,however profitability was impacted by higher input costs.Yumis,which produces dips and ve

259、getarian snacks,delivered good growth in sales and profitability.During the year,we made further progress with the evolution of our product portfolio,completing the acquisition of The Artisanal Group,a leading manufacturer and wholesaler of high-quality baked goods in Australia,primarily serving caf

260、es,restaurants and hotels.Our investment in long-term capital projects in Australia continued,including the expansion of the Canning Vale bakery in Western Australia to secure Tip Tops position as the leading supplier in that state,as well as investing in capacity expansion in Springwood,Queensland,

261、to support Tip Tops foodservice growth.Within the Grocery segment there are an extensive number ofsocial and environmental programmes relevant to their businesses.To find out more about the progress being made across these businesses please seeourwebsite for further information.Read more about ESG i

262、nitiatives of our Grocery businesses onour website at www.abf.co.uk.OPERATING REVIEW CONTINUEDGrocery continuedESG at GroceryAssociated British Foods plc|24|Annual Report 2024A rice farmer growing Hom Mali rice for Westmill using the Sustainable Rice Platform standard,Ubon Ratchathani,ThailandInvest

263、ing in new baking capacity at Tip TopAustralia and New Zealand are developed economies with growing populations.Our highly differentiated Tip Top baking business is well-placedto capitalise as the market expands.Tip Top operates in the retail and foodservice channels and is one of the most known and

264、 trusted brands in Australia and New Zealand.Itsproduct offering is a market leader in packaged bread,including gluten-free,and spanning buns,rollsand bakery snacks.This year we began a multi-million dollar upgrade and expansion of our Canning Vale,Western Australia bakery,where we produce a signifi

265、cant proportion of the Western Australian markets needs.The population in the state is growing quickly and the existing site is currently at maximum capacity.We will install a new bread line with a production capacity of 8,350 loaves per hour.Overall,the upgrade will increase capacity from 44 millio

266、n to 56 million loaves per year as well as raising service levels for customers and providing additional amenities on-site.*SME analysis.Tip Top also has a large business supplying quick-service restaurant(QSR)customers.In this foodservice channel,where Tip Top is a major supplier of buns,the market

267、 is growing strongly and experiencing premiumisation as major QSR customers look to differentiate their offers.Thistrajectory is likely to continue:the total food service market is forecast to grow at 3.5%*forthe next decade and beyond.We are investing in our foodservice manufacturing network to kee

268、p up with demand and position ourselves for future growth.At our Springwood site in Brisbane,Queensland,we have just completed a significant upgrade to our bun and roll line to almost double our capacity from 90 million to 168 million buns per year.Associated British Foods plc|25|Annual Report 2024T

269、ip Tops expanding bakery at Canning Vale,Western Australiato grow our international brandsInvesting in marketingImproving our marketing modelto drive growthSeveral of our brands made further progress this year thanks to a step-up in marketinginvestment.We have taken a careful approach to developing

270、and delivering our marketing campaigns,resulting in greater brand awareness and market penetration.The best example of this is at Twinings,now enjoyed in more than 120 countries and where we see further scope to grow our consumer base.We have invested significantly in advertising to build our brand

271、and achieve our growth ambitions in key markets including the US,Canada,UK,France and Australia.Consumer-centricity is important to us,from product development through to advertising,so we have taken a thoughtful approach to ensure our messaging engages and resonates with consumers to achieve maximu

272、m impact.This approach involves initial qualitative testing of our messages,followed by small trials of the advertising campaigns where wecan gauge their effectiveness using data.Only then do we go live on a regional basis in our markets while continuing to monitor the response via leading independe

273、nt research companies to confirm that we are getting a strong return on our investment.In the US,for example,we began in New Jersey and Connecticut before rolling out across the rest of the East Coast once we had seen proven results from that first trial.*Numerator Panel Insights,Top 10 Tea Category

274、 Brands,52 weeks ending26 May 2024.Our US advert was adapted from an earlier French version,taking the most successful elements from the campaign in France and capitalising on the two markets similar consumer objectives and brand positioning.This meant our US campaign development costs were much low

275、er and we were able to invest more in the placement of the adverts in target media.Our approach is working well.The latest Twinings advert was inthe top 1%of adverts tested by Kantar,the market insight company,which assesses adverts for short-term sales uplift andlong-term brand impact.It reached 85

276、%of our intended audience in the US.We are growing household penetration in both black and herbal teas and we are the top selling tea brand on Amazon.Looking at the top 10 tea brands in the US at a total market level,Twinings has had the greatest increase in repeat rate purchasing in the past year w

277、hich is the key measure ofconsumer loyalty to a brand.*OPERATING REVIEW CONTINUEDGrocery continuedAssociated British Foods plc|26|Annual Report 2024An image from a US TV advert,profiling the 50+delicious varieties of Twinings teas and infusions available in North AmericaAssociated British Foods plc|

278、27|Annual Report 2024A US social media post of two people enjoying Twinings,Americas#1 English Breakfast teaIngredients businesses comprises yeast andbakery ingredients,as well as a portfolio ofspecialty ingredients focused on enzymes,precision extraction,health and nutrition andpharmaceutical deliv

279、ery systems.Yeast and bakery ingredientsWe have a global yeast and bakery ingredients business,AB Mauri,with well-established market positions in the Americas,Europe and Asia.We sell our products to customers in over 100 countries,operating from 52 plants across 32 countries and we have over 5,300 e

280、mployees.We work with industrial and craft bakers to develop leading yeast solutions and bakery ingredients that are right for the needs of their local markets.We are a technology leader in bakery ingredients,supplying a range of products including bread improvers,dough conditioners and bakery mixes

281、 and concentrates for bread,cake and dough products.In addition to bakers yeast,we supply speciality yeast products and associated technologies to the alcoholic beverage and bioethanol markets.Mauri ANZMauri ANZ is an ingredient company with production and milling capacity in Australia and New Zeala

282、nd.Our product portfolio includes a range of flour products,yeast and bakery ingredients,as well as animal feed mixes.New Food CoatingsWe have a 50%ownership in New Food Coatings,one of the leading suppliers of customised breaders,batters,seasonings,sauces and functional ingredients to the food manu

283、facturing andfood service markets across Australia,New Zealand and south east Asia.Specialty ingredientsWe have a portfolio of specialty ingredients businesses,ABFI,that use science and technology to create value-added,innovative ingredients to serve the food and beverage,health and nutrition and ph

284、armaceutical industries,as well as markets such as animal feed and certain industrial segments.We use platforms such as enzymes and other industrial biotechnology,precision extraction and synthetic chemistry.We have almost 1,400 employees and serve customers in morethan 50 countries from manufacturi

285、ng and R&D facilities in15countries across Europe,the Americas and Asia Pacific.In food and beverage,we develop ingredients and solutions that support product innovation.In health and nutrition,we develop ingredients that provide a health benefit in dietary supplements and functional food.In the pha

286、rmaceutical market,we produce antacids,excipients,adjuvants and delivery systems that enter the formulation of drugs.ABFI is comprised of AB Enzymes,Ohly,ABFI Health&Nutrition,ABITEC Corp,SPI Pharma and PGP International.Revenue2,134m2023:2,157mActual currency:down 1%Constant currency:up 2%Adjusted

287、operating profit233m2023:214mActual currency:up 9%Constant currency:up 12%Adjusted operating profit margin10.9%2023:9.9%Operating profit219m2023:201mActual currency:up 9%Return on average capital employed16.9%2023:16.1%Water abstracted16 million m32023:17 million m3Scope 1&2 GHG emissions258 kt2023:

288、291 ktGross investment 238m2023:179mOPERATING REVIEW CONTINUEDIngredientsAbout IngredientsAssociated British Foods plc|28|Annual Report 2024Ingredients sales grew 2%driven by a strong performance in our yeast and bakery ingredients business,AB Mauri.As expected,sales in our portfolio of speciality i

289、ngredients businesses,ABFI,were impacted by customer destocking in H1,with performance then improving in H2.Adjusted operating profit increased by 12%led by yeast and bakery ingredients.Sales in yeast and bakery ingredients grew strongly across most of our regions.This reflects both the annualisatio

290、n of prior year price increases,predominantly in H1,and good volume growth supported by innovation in bakery ingredients,particularly in H2.We had strong growth in North America,Brazil,Mexico,south Asia and south east Asia.Our business in Argentina was impacted by challenging economic conditions and

291、 currency devaluation.We continue to grow our presence and capabilities in Ingredients through strategic acquisitions.We completed the acquisition of Omega Yeast Labs LLC,a leading provider of liquid yeast to the craft brewing industry in the US,complementing our existing portfolio of speciality yea

292、st products.We also completed the acquisition of Mapo,an Italian manufacturer of premium frozen baked goods,underpinning the growth potential for our Scrocchiarella bakery products,and the acquisition of Romix,a specialist blender of baking ingredients based in the UK.During the year,our recently bu

293、ilt speciality yeast plant in Hull,UK,came online,expanding our capacity and capability in yeast.We also continued with the construction of our new fresh yeast plant in Northern India,where there is considerable market demand for bakers yeast.Our ingredients business in Australia and New Zealand,Mau

294、ri ANZ,performed well and benefitted from increased production in our new animal feed mill in Hope Valley,Western Australia,after closing an older facility.New Food Coatings,our joint venture(JV)in Australia,New Zealand and south east Asia,specialising in seasonings,sauces and ingredients,delivered

295、good growth.The JV is investing in a new facility in Bangkok,Thailand,to add capacity.Sales in our portfolio of speciality ingredients businesses,focused on enzymes,precision extraction,health and nutrition and pharmaceutical delivery systems,were impacted by customer destocking in H1 before deliver

296、ing a more encouraging performance in H2.In particular,our enzymes and health and nutrition businesses delivered good growth.We delivered an improvement in the adjusted operating margin of our speciality portfolio,benefitting from improved input costs,while significantly increasing investment in R&D

297、 and commercial capabilities to support long-term growth.Investment continued across a number of strategic capital projects in speciality ingredients.This included our yeast extracts business,Ohly,where we are adding capacity in fermentation and spray drying at our site in Hamburg,Germany.At AB Enzy

298、mes,we are constructing a new high-care enzyme powder packing line in Rajamki,Finland.Operating reviewAssociated British Foods plc|29|Annual Report 2024AB Mauri colleagues inspect tortillas at our Global Technology Centre in Etten-Leur,theNetherlandsUsing digital R&D to deliver efficiencies at AB En

299、zymes Biotechnology research is advancing rapidly and driving the innovation thatis crucial for product development at AB Enzymes,where we develop and market enzyme solutions for customers in the bake,food,technical and feed markets.Our work involves screening for new or improved enzymes and creatin

300、g microbial strains to produce them before testing in different applications.This year we initiated our DigiReDI programme aimed at further digitalising and automating our research and development(R&D)processes in combination with the development of algorithms and the introduction of AI.This work wi

301、ll help to make our product development faster,more efficient and more sophisticated.Our investment will connect all our lab equipment to our bespoke digital R&D processes,enabling more automated data processing and analysis.This eliminates a significant amount of manual data handling,with early tri

302、als seeing the time needed to compile the sample data and complete the analyses cut from hours to seconds.Digitalisation will also support our enzyme screening methods by more effectively enabling the processing of ever-increasing volumes of data.Furthermore,new digital processes can pull data toget

303、her into useful formats,for example detailed reports required by external regulators responsible for approving new enzyme products.As a result,our researchers are freer to focus more on the product development itself,the interpretation of results and the fine tuning of experiments to produce success

304、ful outcomes,aswell as being able to run more product projects inparallel.Looking ahead,DigiReDI will create the digital infrastructure to enable us to integrate new software and technologies as they evolve into ourfurther digitised R&D so that we can maintain pace with new scientific advances.We be

305、lieve this digital infrastructure will significantly improve our product development capabilities in the yearsto come.OPERATING REVIEW CONTINUEDIngredients continuedAssociated British Foods plc|30|Annual Report 2024An AB Enzymes R&D colleagueat our lab in Rajamki,FinlandESG highlights AB Mauri is fo

306、cused on using water efficiently and returning itsafely to the environment after use.Many of its production facilities have complex on-site effluent treatment plants that include biological processes,evaporators and reverse osmosis membrane systems that can produce reusable water and useful co-produ

307、cts.Since 2010,it has invested$120m inwaste water treatment and 2023/24 was another year ofprogress on this agenda,with the construction of a new biogas co-generation plant in Brazil.AB Mauri reduced its Scope 1 and 2(location-based)GHG emissions by 13%against last year,driven by energy efficiency i

308、nitiatives,including advanced fermentation aeration,high-efficiency natural gas boilers,and heat recovery technologies.Biogenic carbon emissions from yeast fermentation were also reduced by 4%.AB Enzymes,the ABFI industrial biotech business,has continued developing innovative enzyme products for var

309、ious industries,that enable GHG emissions reductions without compromising product performance.This is a key part of its customer offering and continues to be a central focus for investment and innovation.75%of our Ingredients businesses waste was recycled,recovered,reused,or sent for another benefic

310、ial use in 2023/24.Initiatives this year included transforming waste into animal feed or into fertiliser and recycling of paper and plastics.Read more about ESG initiatives of our Ingredients businesses on our website at www.abf.co.uk.Investing in water stewardshipat AB MauriGood water stewardship i

311、s essential for our yeast and bakery ingredients business.Water is the medium in which we grow yeast and it is also used for cooling and cleaning equipment in our factories.Our water stewardship strategy focuses on a Four R approach:Return,Reduce,Reuse,and Recycle.Water that we return to the environ

312、ment must be treated to standards that meet or exceed regulations in the countries where we operate.In some cases,water treatment also results in valuable by-products which can be used to produce fertiliser,animal feed or a source of energy.Our sites predict future water treatment legal requirements

313、 so that upgrades can be future-proofed.Guided by this strategy,we have invested more than$120m in water treatment since 2010.A recent example of this investment is a new waste water treatment installation paired with a biogas co-generation plant at our site in Pederneiras,Brazil,which will both imp

314、rove water quality and produce electrical and thermal energy from steam and hot water.The installation utilises digesters:aprocess that uses anaerobic digestion in the treatment of waste water to produce biogas.It can also then treat this biogas so it can be used as a fuel source and transformed int

315、o energy via a co-generation plant.Following our investment and strategic approach to water stewardship,we have seen a steady year-on-year increase in the proportion of water used that is treated and returned safely to the environment,up from 74%in2018/19 to 84%in 2023/24.We are approaching the theo

316、retical maximum of this water return KPI due to the water which leaves the site in our products or through production process evaporation.We are now moving tothe next water circularity phase focused on Reduce,Reuse and Recycling of water into our facilities,and measuring our performance through an e

317、volution of our KPI metrics.ESG at IngredientsAssociated British Foods plc|31|Annual Report 2024The waste water anaerobic digestion facility at AB Mauris yeast plant in Pederneiras,Brazilto enhance ourportfolioInvesting in new capabilitiesBrewing a bright future:Yeasts role in craftbeer and biotechn

318、ological evolutionIn August 2024,AB Mauri North America acquired Omega Yeast,a leader in the craft brewing liquid yeast market,to further strengthen and accelerate its speciality yeast business.We believe there is a good opportunity to expand and enhance the offerings of AB Biotek(an AB Mauri busine

319、ss division)inthebeer and wider alcohol beverage market globally.The origins of AB Bioteks yeast and associated fermentation technologies for beer can be found within the traditions of whisky production in Scotland and Ireland and leading wine producers worldwide.For many decades our products have b

320、eenpreferred by world-leading artisans to produce some ofthemost iconic whisky brands and award-winning wines.The craft beer segment has experienced significant growth,driven by consumer demand for diverse and consistent high-quality beers.A critical component in this industry is brewing yeast,which

321、 plays a vital role in fermentation and flavour profiledevelopment.In the early days of craft brewing,brewers relied on traditional yeast strains,often sourced from larger breweries or home-brewing communities.However,advances in biotechnology andyeast management have revolutionised the industry.AB

322、Bioteks fermentation and yeast technology experts have meticulously developed a specialist portfolio of yeast solutions for craft brewers.The strategic acquisition of Omega Yeast significantly enhances our existing brewers yeast portfolio andbrands.It introduces cutting-edge strains and innovative b

323、ioengineering capabilities,further strengthening the quality anddiversity of our craft brewing solutions.Omega Yeast is a leading producer of liquid yeast for the craftbrewing industry in North America,operating from a state-of-the-art facility in Chicago,Illinois.The business is renowned for its in

324、novative capabilities,catering to a wide range of brewing styles from traditional lagers and ales to West Coast IPAs andhard seltzers.Omega Yeast offers a diverse range of yeast strains tailored toenable craft brewers to differentiate their products,including traditional styles and innovative advanc

325、ed solutions such as theNEXT Series,featuring bioengineered strains for novel flavours,and the PLUS Series,which offers familiar strains with enhanced performance.These strain evolutions allow brewers to explore new and unique flavour profiles,pushing the boundaries of traditional brewing techniques

326、.Advanced propagation methods ensure consistent quality and performance,improving fermentation reliability.By continuously advancing our yeast technology,wecan assist brewers globally to experiment with new brewingmethods and styles,keeping the craft beer market dynamic andexciting.OPERATING REVIEW

327、CONTINUEDIngredients continuedAssociated British Foods plc|32|Annual Report 2024The Omega YeastLabs production facility inChicago,UnitedStatesAssociated British Foods plc|33|Annual Report 2024Craft beer being enjoyed atRockwell Beer Company,an Omega Yeast customer,in St.Louis,United StatesABF Sugar

328、produces a range of sugar,fuels andother products from sugar cane,sugar beet and wheat in Africa,the UK and Spain.Across this group of businesses we employ 29,000 people and operate 19 plants in eight countries,with the capacity to produce approximately 4.5 million tonnes of sugar annually.Wefarm mo

329、re than 330,000 hectares across our markets,between ourselves and over 25,000 growers.In Africa,we have sugar cane operations in Eswatini,Malawi,South Africa,Tanzania and Zambia,and packing operations in Rwanda.We have market-leading consumer brands in these countries,with Bwana Sukari in Tanzania,W

330、hite Spoon in Zambia and Illovo in multiple markets.In certain markets we alsoproduce co-products such as potable alcohol,furfural and electricity for local grids.In the UK,British Sugar is the sole processor of the sugar beetcrop and in Spain,Azucarera is the largest sugar producer.Ourstrong domest

331、ic brands include Silver Spoon in the UK and the Azucarera brand in Spain.In the UK,we produce a range of co-products including energy,animal feed,bioethanol,betaine and CO2.We operate one of the largest wheat bioethanol production facilities in the UK,Vivergo.We also have a 42.5%ownership in Czarni

332、kow Group Limited(CZ),a global supply chain management and advisory company specialising in the food and beverage sector.Revenue2,529m2023:2,474mActual currency:up 2%Constant currency:up 11%Adjusted operating profit199m2023:179mActual currency:up 11%Constant currency:up 46%Adjusted operating profit

333、margin7.9%2023:7.2%Operating profit181m2023:119mActual currency:up 52%Return on average capital employed10.9%2023:9.7%Scope 1&2 GHG emissions2,072 kt2023:1,973 ktWater abstracted859 million m32023:838 million m3Gross investment 252m2023:205mOPERATING REVIEW CONTINUEDSugarAbout SugarAssociated British Foods plc|34|Annual Report 2024Sugar segment sales and profitability were strongly ahead of the pr