Associated British Foods is a diversified international food, ingredients, and retail group. The Group conducts business in China, South America, Africa Europe, Australia, New Zealand, Asia, and the United States.
The group enjoys upward revisions in earnings per share and growth prospects. Indeed, the Thomson Reuters consensus expects sales to grow for the fiscal year at 11065 M GBP against 10167 M GBP for the previous year.
Following a bullish wave, the stock now shows a slight decline that should lead toward its GBp 1228 medium-term support. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term. The mid-term support and moving averages could stop bearish trend, and play as stepping stone for a technical rebound.
We suggest a long position in order to aim a return on the mid-term resistance of GBp 1292; with a stop loss at GBp 1223.
Associated British Foods plc is one of the largest European food processing groups. Net sales break down by family of products as follows:
- grocery and bakery products (21.3%): tea (Twinings brand), oils (Mazola and Capullo), spices (Spice Islands and Durkee), jam, bread, biscuits, sauces, etc.;
- sugar (12.9%): Silver Spoon, Billington's brands, etc.;
- ingredients (10.9%): yeasts, flavorings, emulsifiers, sterols, esters, etc.;
- processed food products (10.1%): mainly cereal and animal feed.
The remaining sales (45.6%) are from clothing distribution (408 outlets located mainly in the United Kingdom, Ireland, Spain, Germany, the Netherlands, and Portugal under the Primark and Penneys names).
Net sales are distributed geographically as follows: the United Kingdom (36.8%), Europe and Africa (38.2%), Asia/Pacific (12.7%) and Americas (12.3%).
ASSOCIATED BRITISH FOODS PLC 
