Associated British Foods (ABF)

Sector:

Food

Index:

FTSE 100

2,498.00p
   
  • Change Today:
    -16.00p
  • 52 Week High: 2,514.00
  • 52 Week Low: 1,825.50
  • Currency: UK Pounds
  • Shares Issued: 753.51m
  • Volume: 742,766
  • Market Cap: £18,823m
  • RiskGrade: 161

Primark warns of price rises as inflation bites, H1 profits soar

By Frank Prenesti

Date: Tuesday 26 Apr 2022

LONDON (ShareCast) - (Sharecast News) - Agribusiness-to-clothing group Associated British Foods on Tuesday reported soaring first-half profits, but warned of increasing prices at its Primark clothing business due to inflation.
AB Foods posted adjusted operating profit of £706m for the 24 weeks to March 5, up from £369m a year earlier. Group revenue for the six months rose 25% to £7.88bn. The interim dividend was more than doubled to 13.8p a share from 6.2p.

The company said it was unable to offset Primark price rises with cost savings would implement "selective increases across some of its autumn/winter stock.

"However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty," said chief executive George Weston.

AB Foods said its improved results were driven by all Primark stores remaining open and trading throughout the period after Covid lockdowns, except for short spells in Austria and The Netherlands.

"Notwithstanding the inflationary pressures we are experiencing, our outlook for the year is for significant progress in adjusted operating profit and adjusted earnings per share for the group," Weston added.

Sales at Primark sales increased 59% to £3.54bn, while sales in the group's food businesses, which include sugar, grocery, and ingredients, rose 6% to £4.34bn.

The food businesses, which produce brands such as Twinings tea, Kingsmill bread and Ovaltine drinks, were experiencing increasing inflationary pressures on raw materials, commodities, supply chain and energy. AB Foods said it was mitigating this through operational cost savings and price increases.

It added that the Ukraine war had led to higher commodity and energy prices which would result in a greater margin reduction in the food businesses than previously expected for the full year.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Associated British Foods Market Data

Currency UK Pounds
Share Price 2,498.00p
Change Today -16.00p
% Change -0.64 %
52 Week High 2,514.00
52 Week Low 1,825.50
Volume 742,766
Shares Issued 753.51m
Market Cap £18,823m
RiskGrade 161

Associated British Foods Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.32% below the market average76.32% below the market average76.32% below the market average76.32% below the market average76.32% below the market average
60% below the sector average60% below the sector average60% below the sector average60% below the sector average60% below the sector average
Price Trend
86.97% above the market average86.97% above the market average86.97% above the market average86.97% above the market average86.97% above the market average
85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average
Income
47.54% below the market average47.54% below the market average47.54% below the market average47.54% below the market average47.54% below the market average
57.14% below the sector average57.14% below the sector average57.14% below the sector average57.14% below the sector average57.14% below the sector average
Growth
37.77% above the market average37.77% above the market average37.77% above the market average37.77% above the market average37.77% above the market average
76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average

What The Brokers Say

Strong Buy 2
Buy 4
Neutral 12
Sell 1
Strong Sell 0
Total 19
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Associated British Foods Dividends

  Latest Previous
  Final Special
Ex-Div 14-Dec-23 14-Dec-23
Paid 12-Jan-24 12-Jan-24
Amount 33.10p 12.70p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 6 @ 2,498.00p
16:35 409,113 @ 2,498.00p
16:35 52 @ 2,498.00p
16:35 673 @ 2,498.00p
16:35 576 @ 2,498.00p

Associated British Foods Key Personnel

CEO George G Weston
Chair Michael McLintock
Finance Director Eoin Tonge

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