AB Foods expects higher H1 sales and adjusted operating profit – Update

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By Sabela Ojea

 

Associated British Foods PLC said Monday that revenue and adjusted operating profit for the first half of fiscal 2022 are expected to be significantly higher than a year earlier.

The British conglomerate also said sales and adjusted operating profit for the 24 weeks ending March 5 were expected to be above pre-pandemic levels in the first half ended February 29, 2020.

The FTSE 100-listed company, which also expects adjusted operating profit to rise in the second half, said its outlook for the full year remains unchanged, marked by significant growth in adjusted operating profit and adjusted earnings per share.

Turning to sales at clothing retailer Primark – which does not sell goods online – first-half revenue is expected to be more than 60% higher than a year earlier, with a margin of adjusted operating of about 11%, AB Foods said. .

Sales in the UK and mainland Europe continued to outperform the previous year, he said, noting that its US business continues to outperform the rest of its store base and is on on track to generate 2% like-for-like sales growth over the period. .

“The effect of inflation on Primark’s raw materials and supply chain…was largely mitigated by a reduction in store operating and overhead costs and a favorable US dollar exchange rate “, he said, noting that comparable sales improved from the last quarter of its fiscal 2021.

Turning to its other businesses, AB Foods said first-half grocery revenue is expected to be 2% higher than a year earlier and sugar revenue is expected to be more than 20% higher year-on-year. last year.

Revenue from its ingredients business is expected to be 10% higher than last year thanks to a recovery in volumes and cost savings amid inflation, it added.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswire

February 28, 2022 03:21 ET (08:21 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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