LONDON--Associated British Foods PLC (ABF.LN), the U.K.-based
food, ingredients and retail group, Thursday said it is on track to
post full-year profit growth after recording a rise in
third-quarter revenues, boosted by its sugar operations and
Primark. Still, the maker of Silver Spoon sugar, Kingsmill bread
and Twinings tea said U.K. household incomes remain under
pressure.
MAIN FACTS:
-Group revenue on continuing operations in the 16 weeks to June
23 up 13%. Sugar revenue up 54%. Agriculture revenue up 10%.
Grocery revenue flat. Ingredients revenue down 2%. Primark revenue
up 13%.
-Group revenue on continuing operations in the 40 weeks to June
23 up 11%. Sugar revenue up 28%. Agriculture revenue up 15%.
Grocery revenue up 3%. Ingredients revenue up 1%. Primark revenue
up 14%.
-Says sugar revenues reflect the strong commercial environment
in Europe and, to a lesser degree, Africa. However, prices in China
have continued to fall since the half year.
-For grocery, says pressure on U.K. household incomes has
continued this year which has driven consumers to seek value from
product choice, promotions and price.
-Says Primark revenue driven by an increase in retail selling
space and further like-for-like sales growth. Says trading in the
U.K. and Ireland during the quarter was good with the exception of
April when cold and wet weather led to weak sales. Says trading in
continental Europe remained healthy throughout the period.
-Says Primark operating margins are improving in the second
half, reflecting lower input costs.
-Net debt at June 23 was below GBP1.4 billion.
-Remains on track to deliver "substantial growth" in both
adjusted operating profit and adjusted earnings per share for the
full year.
-Shares closed Wednesday at 1267 pence, valuing the company at
GBP10.03 billion.
-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com
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