Primark owner AB Foods says 'well-positioned' for further growth
Full-year adjusted operating profit up 32%
Outcome driven by grocery and Primark
Cautious on the outlook for sugar
Announces further 500 mln stg share buyback
Recasts, adds detail paragraphs 3 and 5, CEO comment paragraph 7
LONDON, Nov 5 (Reuters) -Associated British Foods ABF.L said it was poised for further growth as it reported a 32% rise in full-year profit, driven by robust performances from its Primark clothing business and grocery division.
In the year to Sept. 14, the group's adjusted operating profit, its preferred earnings measure, rose to 1.998 billion pounds ($2.6 billion) from 1.51 billion pounds in 2023/24. Revenue climbed 2% to 20.1 billion pounds.
The group said it was confident on the outlook for Primark, its ingredients and agriculture divisions, and its grocery business, which includes products such as Twinings tea, Jordans cereals, Kingsmill bread and Ovaltine drinks.
However, it reiterated its caution on its sugar business due to a recent reduction in European sugar pricing. It forecast adjusted operating profit for sugar in 2024/25 to fall to between 50 million and 75 million pounds from the 199 million pounds made in 2023/24, before recovering in the following year.
The group said Primark is targeting mid-single percentage digit sales growth in 2024/25, with adjusted operating margin in line with the 11.7% achieved in 2023/24.
It said over the medium and long term, Primark had significant opportunities to grow.
"We believe our long-term, patient investment approach will deliver strong returns and continue to create value for all stakeholders," said CEO George Weston.
The group also announced a further share buyback programme of 500 million pounds. Its shares have risen 8% over the last year.
($1 = 0.7712 pounds)
Reporting by James Davey; editing by Sarah Young, Sachin Ravikumar and Christina Fincher
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
