Posted on January, 28, 2025 at 08:28 am
For a second consecutive year, stronger performance prevailed in international grain-based foods stocks, as more than 65% of the companies tracked by Milling & Baking News, a sister publication of World Grain, finished higher year-over-year. While some weakness was noted in Japan, strength stood out across the Egyptian companies active in the grain-based foods industry.
A total of 25 of the 38 companies tracked by Milling & Baking News recorded year-over-year increases in share price during 2024 while 13 posted decreases. One company, Flour Mills of Nigeria, suspended trading in early December as the company prepares for delisting. By comparison, 18 companies recorded year-over-year increases in 2022 and only 13 recorded increases in 2021.
On the London Stock Exchange, Associated British Foods finished the year at 2043p, down 13% from 2338p in 2023 but up 30% from 1576p in 2022. In September, ABF acquired The Artisanal Group, an Australian commercial bakery business. Products from The Artisanal Group include the bakery brands Brasserie Bread (bread, buns and rolls, pastries and cakes), Noisette (cakes, tea cakes, biscuits and macaroons) and Jaune (pastries and mooncakes). The Artisanal Group joins ABF’s grocery business unit, which includes food and beverage brands such as Twinings (tea), Ovaltine (malted beverages and snacks), Jordans (breakfast cereals), Mazola and Capullo (cooking oils), Fleischmann’s (yeast), Karo (corn syrup), Argo (corn starch), Kingsmill (bread products), Dorset Cereal (muesli and granola), Ryvita (crispbreads) and Silver Spoon and Billington’s (sugar).
Carr’s Group PLC’s share price closed at 117p in 2024, up 16% from 100.6p in 2023. During the year, Carr’s management made the decision to sharpen its focus in its agriculture business to prepare for future growth in core markets. The company implemented a strategy of “focus, improve, deliver” that led to changes in both the divisional leadership team and in the business.
Tate & Lyle PLC, the global sweetener company, had a 52-week high of 848.5p in late October before tailing off and settling at 649.5p on Dec. 31, down 1.5% from 659p in 2023. In November, Tate & Lyle completed the acquisition of CP Kelco US, CP Kelco China and CP Kelco ApS together with each of their subsidiaries from J.M. Huber Corp. CP Kelco supplies pectin, specialty gums and other ingredients. The transaction closing came about a month after Tate & Lyle and Manus, a company that uses synthetic biology to develop ingredient alternatives, formed a partnership called The Natural Sweetener Alliance. The partnership aims to expand access to natural sugar reduction options, according to the companies.
Premier Foods, the UK’s largest food producer, finished at 187.6p, up 38% from 135.6p in 2023. The company received a boost from new products during the year, including the launch of Mr Kipling loaf cakes in two flavors: chocolate and fudge, and sticky toffee.
Greggs PLC, an operator of retail bakery shops and cafes in the United Kingdom, finished at 2786p, up 7% from 2602p in 2023 and compared with 2346p in 2022 and 3337p in 2021.
The three leading UK retail chains showed mixed performance during 2024. Tesco, a leader in UK food retailing, closed at 368.3p, up 27% from 290.5p a year ago, while Marks & Spencer climbed 38% to finish the year at 375.5p, up from 272.4p. Sainsbury, PLC closed the year at 273.6, down 10% from 302.6p in 2023.
In Ireland, Greencore Group PLC, a European maker of convenience food and malt products, surged to 193.8p, up 101% from 96.45p in 2023 and up 202% from 64.15p in 2022.
Kerry Group finished the year at €93.25, down 3.4% from €96.45 in 2023. In November, Kerry entered an agreement with Kerry Co-Operative Creameries Ltd. to sell Kerry Dairy Holdings (Ireland) Ltd. to the co-operative for €500 million. Kerry Dairy Ireland consists of Dairy Consumer Products, with its range of cheese, cheese snacks, dairy snacks and dairy spreads which may be found across retailers in the UK and Ireland. It also comprises the Dairy Ingredients business, which is a provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
Origin Enterprises, a food and agribusiness group based in Dublin, Ireland, finished the year at €2.75, down 20% from €3.44 in 2023.
In Australia, GrainCorp Ltd. closed the year at A$7.34, up narrowly from A$7.29 in 2023. In April, GrainCorp acquired XF Australia’s (XFA) Performance Feeds and Nutrition Services Australia (NSA) businesses. XFA provides high-quality feed supplement products and expertise in nutritional consulting to Australia’s feedlot and grazing sectors. GrainCorp’s Animal Nutrition business provides over 400,000 tonnes of feed across Australia and New Zealand annually and supplies 300,000 tonnes of canola meal to the animal feed market.
Nutrien Ltd., which was formed in January 2018 as a merger of Agrium Inc. and PotashCorp., closed 2024 at C$64.32, down 14% from C$74.65 in 2023.
In France, Groupe Danone SA, the country’s largest food and beverage company, closed 2024 at €65.12, up 11% from €58.68 in 2023. In June, Danone said it will be leaning more toward science and innovation, operational discipline and proactive portfolio management in the 2025-28 period. “We now have the right fundamentals in place to turn Danone into a truly science-based, consumer- and patient-centric company with an even stronger focus on our unique health-focused mission,” said Antoine de Saint-Affrique, chief executive officer, during a June 20 investor day in Amsterdam. De Saint-Affrique plans to accomplish this by gradually shifting how Danone handles the protein and gut health categories, ramping up in its Away-from-Home and Medical Nutrition business models and expanding its footprint to become “a truly multichannel company.”
In The Netherlands, Unilever, the Anglo-Dutch food and personal products business, climbed as high as 5034p in early September before closing 2024 at 4548p, up 20% from 3800p in 2023. In November, Unilever partnered with Nufarm, a global agriculture innovator, to develop a variety of sugar cane to extract plant-based oils for use in its cleaning ingredients.
Ahold, the Dutch-based company with global food retailing and foodservice operations, finished the year at €31.49, up 21% from €26.02 in 2023. In December, Ahold Delhaize USA partnered with The Campbell’s Co. to reduce Scope 3 greenhouse gas (GHG) emissions associated with potato farming. The pilot project will take place over the next three years and will help partner farms implement regenerative farming techniques to create more resilient agricultural systems and reduce carbon emissions through soil health practices among other opportunities, Ahold said.
DSM-Firmenich, the Dutch chemical company with food ingredient interests, increased 6% to €97.72 from €92 in 2023.
Corbion posted an increase of 11% in 2024, finishing at €21.60 after ending at €19.38 in 2023. In September, Corbion announced two promotions designed to accelerate growth in its North American bakery division. Todd Oelschlager was named vice president of bakery sales, North America, and Jeff Stephens was named senior director of bakery sales, North America. Earlier in the year the company unveiled a significant restructuring program that involves simplifying the company’s structure into two business units from three business units and reducing its workforce by about 200, which included closing a fermentation plant in Peoria, Ill.
In Switzerland, Nestle SA, the world’s largest food company, closed at 74.88 Swiss francs, down 23% from 97.51 Swiss francs in 2023. The company signaled a shift from a period of portfolio reshaping to achieving the business’ growth potential, highlighted by the naming of Laurent Freixe as the company’s new chief executive officer in August. Freixe outlined his near-term priorities for Nestle under his leadership, including organic growth, productivity and execution. Nestle SA launches more than 1,000 innovations and product renovations annually, but that is about to change, Freixe said. The company is set to cut that annual number in half and shift the company’s innovation strategy to a more targeted approach.
Aryzta AG closed 2024 at 1.59 Swiss francs, up 3% from 1.55 Swiss francs at the end of 2023. In July, Michael Schai was named CEO of Aryzta AG, effective Jan. 1, 2025. He succeeds Urs Ernst Jordi, who had served as interim CEO since November 2020. Schai most recently was CEO of Lindt & Sprungli Australia since January 2019. Aryzta AG also began construction on a new stone oven in Eisleben in Saxony-Anhalt, Germany. Eisleben is Aryzta’s largest production site in Europe and one of the largest bake-off facilities in Europe. Aryzta said the oven will produce “high quality products with a handcrafted feel.”
Zurich, Switzerland-based chocolate maker Barry Callebaut finished 2024 at 1204 Swiss francs, down 15% from 1419 Swiss francs in 2023. In August, Barry Callebaut named Natasha Chen president of its North American division. In her new role, Chen manages the company’s North American business in the United States, Mexico and Canada.
Share price movement in Japan was mixed during 2024. Nisshin Seifun, the Japanese holding company that includes Nisshin Milling, Japan’s largest flour miller, closed at Y1842, down 3% from Y1898.5 in 2023. Ajinomoto Co. Inc., a multinational food and biotechnology company, closed at Y6452, up 19% from Y5440 in 2023.
Nippn Corp. (formerly Nippon Flour Mills Co. Ltd.) decreased 2% for the year, falling to Y2186 from Y2223, while Nissin Foods Holdings, a leading manufacturer of instant noodles, decreased 23% to Y3823 from Y4921. In September, Nissin Foods acquired Australian frozen food manufacturer ABC Pastry for A$33.7 million. ABC Pastry is a Sydney-based company that has become recognized for its dumplings. Earlier in the year, Nissin Foods acquired 100% equity interest in Gaemi Food, a snacks company based in South Korea, for approximately $35 million from Sung Gyung Food Co., Ltd. Gaemi manufactures crispy roll snacks exported to over 20 countries, including Australia, China, Indonesia, Japan, Thailand, Taiwan, the United States and Vietnam.
Baking leaders Yamazaki Baking and First Baking Co. Ltd. showed weaker share price performance in 2024. Yamazaki closed at Y2943.5, down 8.5% from Y3216 in 2023. First Baking, meanwhile, fell 15% to Y561 from Y662 in 2023.
Olam Group finished 2024 at 1.21 Singapore dollars, up 16% from 1.04 Singapore dollars at the end of 2023.
Wilmar International fell 14% to 3.1 Singapore dollars from 3.57 Singapore dollars in 2023.
Indonesia’s Indofood, one of the largest food producers in Asia, increased 19% to R7700 from R6450 in 2023.
South Africa-based Tiger Brands Ltd. surged in 2024, finishing at R28902, up 44% from R20129 in 2023.
Egyptian companies engaged in flour milling posted gains in 2024, led by a 91% increase at South Cairo and Giza Flour Mills. Other increases included Upper Egypt Flour, up 81%; Middle and West Delta Flour Co., up 63%; North Cairo Flour Mills, up 55%; East Delta Flour Co., up 31%; Alexandria Flour, up 10%; and Middle Egypt Flour, up 8%.
In Africa, Flour Mills of Nigeria PLC suspended trading in early December as it prepares for delisting. The company announced a restructuring plan to transition the company’s structure in line with its long-term vision of becoming a Pan-African food leader.
In Spain, Ebro Foods shares rose 2% to €15.88 from €15.52 in 2023. In April, Riviana Foods, a subsidiary of Ebro Foods SA, completed the first phase of its $80.6 million investment in its processing and packaging plant in Memphis, Tennessee, US. The first phase involved renovating about 20,000 square feet of the plant to double its capacity to produce Minute ready-to-serve rice cups.
Source: World Grain