AB Foods Says 4Q 2020 Trading Beat Views
September 07 2020 - 3:02AM
Dow Jones News
By Matteo Castia
Associated British Foods PLC said Monday that trading in the
fourth quarter of fiscal 2020 beat its expectations for both
Primark and its food businesses.
The British conglomerate said trading at its flagship Primark
clothing brand has been strong since reopening in May and that it
expects the brand to generate cumulative sales of 2 billion pounds
($2.66 billion) at year-end.
AB Foods said it expects Primark's adjusted operating profit for
the year ending Sept. 12 to at least reach the top end of its
previously announced guidance of GBP300 million to GBP350
million.
This is in line with analysts' projections at Numis Securities,
who had forecast Primark to support profitability toward the upper
end of management's range.
The company said revenue from its grocery business will be ahead
of fiscal 2019 results. "Although Westmill and AB Sports Nutrition
have seen sales and profit declines due to the reduction in
foodservice activity and sports events respectively, Silver Spoon,
Jordans, Dorset Cereals, Ryvita and AB World Foods all benefited
from significant increases in consumer demand in the second half,"
the company said.
The sugar and agriculture units are also forecast to deliver
full-year profitability ahead of the previous year, the companu
said.
AB Foods said the GBP284 million charge it had recognized in its
half-year report due to inventory is yet to be delivered.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
September 07, 2020 02:47 ET (06:47 GMT)
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