ABF, BAKK, PFD: Stocks to watch amid fall in food exports to EU after Brexit

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ABF, BAKK, PFD: Stocks to watch amid fall in food exports to EU after Brexit

 ABF, BAKK, PFD: Stocks to watch amid fall in food exports to EU after Brexit
Image source: © Thorren | Megapixl.com

Highlights

  • As per the latest HMRC data, the value of food exports to the European Union (EU) has plunged by £2.4 billion in the first 15 months after the Brexit. 
  • Exports of fruits and vegetables were the worst hit, down by 44% to £847 million from £1.5 billion before Brexit.

UK food exports to the European Union region have dipped by £2.4 billion in the first 15 months of Brexit, according to data released by the HMRC. The overall exports, however, recovered in the first three months of this year after suffering for months due to a decrease in demand f during the pandemic period. 

There have been many discussions surrounding the impact of Brexit on the UK’s exports. However, according to recent data from HMRC the value of food exports to the European Union (EU) has plunged by £2.4 billion in the first 15 months of Brexit.

Although the experts were expecting short-term repercussions following the drop out of the world’s largest single market area, this latest figure indicates that the UK has had a prolonged impact. 

The data revealed that the UK food export from 1 January 2021 to 31 March 2022 has dropped by 19% to £10.4 billion. According to the commodity data by Hazlewoods Chartered Accountancy Firm, this was down from £12.8 billion before the Brexit and primarily resulted from the decline in perishable goods exports due to challenging custom requirements, long port delays, and increasing costs.  
Exports of fruits and vegetables were the worst hit, down by 44% to £847 million, while dairy exports fell by 13% to £1.4 billion from £1.6 billion and meat and fish exports plummeted by 16% to £2.9 billion from £3.5 billion.

A look at some FTSE-listed food stocks that investors may look at. 

Associated British Foods Plc (LON: ABF

The UK-based multinational food processing and retailing company on 7 July was seen trading at GBX 1,575.00 and was up by 0.80% at 8:06 AM GMT+1. ABF’s market cap stood at £12,369.91 million, with its Earning Per Share (EPS) at 0.61.
ABF’s stocks haven’t fared well in the past 12 months, giving its investors a negative return of -30.52% and YTD returns of -21.31%. 

Bakkavor Group Plc (LON: BAKK

Bakkavor Group is a UK-based international food manufacturing company specialising in freshly prepared foods. With a market cap of £567.84 million as of 7 July, the FTSE All-Share constituent’s Earning Per Share (EPS) stood at 0.06.
Its stock has not offered its investors a chance to cheer as it gave a negative return of -27.94% over a year. The company's shares were trading at GBX 98.00 as of 8:06 AM GMT+1 on 7 July.

Premier Foods Plc (LON: PFD

One of the UK’s leading food manufacturers, Premier Foods Plc, on 7 July, was trading at GBX 108.80 as of 8:06 AM GMT+1. Boasting a market cap of £939.11 million, this FTSE 250 constituent’s EPS stood at 0.13. This stock has given its investors minor but positive returns of 0.36% over the past 12 months. 

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

 

 

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