KYGA, ABF, PFD: Stocks in focus as concerns grow over rising food prices

Follow us on Google News:
 KYGA, ABF, PFD: Stocks in focus as concerns grow over rising food prices
Image source:


  • High food and energy prices have hit household budgets in the UK as inflation continues to break previous records.
  • Ex-Sainsbury's boss has claimed that people should be ready for higher grocery bills in the longer term.

The COVID-19 pandemic and Brexit had already stressed the economy and the situation was further aggravated by the Russia-Ukraine crisis. Supply chain disruptions have increased the input costs and pushed up the prices of most items, and high energy and food prices have hit household budgets. As a result, people are now spending less on things than they were a year ago, with the inflation rate in the UK touching new highs month over month.

Experts have warned that the situation is unlikely to change in the coming months, and the Bank of England has predicted that inflation rates may reach as high as 10% in the second half of the year. Meanwhile, Justin King, the former CEO of supermarket chain Sainsbury's (LON: SBRY), has warned that households should be ready for higher grocery bills in the long term as the UK's 'golden era' of cheap food is coming to an end.

High energy and food prices have hit household budgets in the UK.

©2022 Kalkine Media®

In an interview with BBC Radio 4, King said that despite reporting higher profits, supermarkets could not be expected to bear the extra input costs completely. He further claimed that people now spend less money on food in terms of proportion of household budgets than they ever did, and this proportion may rise in the longer term.

Amid concerns about the impending rise in food prices, let us look at some food-related stocks listed on the London Stock Exchange and analyse their investment prospects.

Kerry Group (LON: KYGA)

The Ireland-based company develops taste and nutrition solutions for the food and beverages industry as well as pharmaceutical markets. It claims that over one billion people globally enjoy food and beverages that contain its taste and nutrition solutions. The company posted strong business growth for the first quarter of 2022, with a group volume growth of 5.6%.

Kerry Group holds a current market capitalisation of £14,810.17 million, and its shares were trading at EUR 100.66, 2.49% up at 10:55 am GMT+1 on 13 May. The share value has depreciated by more than 8% over the last one year, while the year-to-date return is currently at -11.27%.

Associated British Foods Plc (LON: ABF)

Associated British Foods is a diversified food processing and retailing company and operates in five segments, including grocery, sugar, agriculture, ingredients, and retail. For the 24 weeks ended 5 March 2022, the company reported a revenue of £7,882 million, while its adjusted operating profit rose by more than 90% to £706 million.

Shares of ABF were trading at GBX 1,671.50 at 11:15 am GMT+1 on 13 May 2022, with a market cap of £12,951.79 million. The company's one-year return stands in the negative territory at -26.86%, and the year-to-date return stands at -16.95%.

Premier Foods Plc (LON: PFD)

The FTSE 250-listed company manufactures and distributes food products and owns several popular brands like Mr Kipling, Bisto, Angel Delight, etc. It has 16 manufacturing sites and offices across the UK and employs over 4,000 people.

The company has a market cap of £888.89 million, and its share price appreciated by 4.13% over the past one year. At 11:27 am GMT+1 on 13 May 2022, its shares traded at GBX 104.77, up 1.72%.

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.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles