LONDON--Associated British Foods PLC (ABF.LN), the food
ingredients group and owner of the Primark clothing retail chain,
said Monday that its adjusted operating profit for the second half
will be substantially ahead of last year and in line with
expectations, though the income statement will include a non-cash
charge of some 100 million pounds for the impairment of property,
plant and equipment at the meat factory in Australia.
MAIN FACTS:
-Net interest expense in the second half will be a little higher
than last year.
-Both adjusted operating profit and adjusted earnings per share
for the full year will be substantially ahead of last year.
-Investment in new stores for Primark increased in the second
half and will be ahead of last year for the year as a whole;
capital expenditure for the group will be lower than last year.
-Level of net debt at the year end is expected to be below
GBP1.2 billion compared with GBP1.3 billion last year.
-Sugar revenues in the second half have been well ahead of last
year reflecting the strong commercial environment in Europe and to
a lesser degree Africa.
-Agriculture's strong performance has continued, with revenues
ahead and profit expected to be in line with last year.
- Grocery revenues for the full year will be ahead of last year;
adjusted operating profit will show a decline
-Ingredients' revenues will be similar to last year but
operating profit will be sharply lower.
-Sales at Primark for the full year are now expected to be 17%
ahead of last year at constant currency; result was driven by an
increase in retail selling space and like-for-like sales growth
which is expected to be 3% for the full year.
-Shares closed Friday at 1,306 pence valuing the company at
GBP10.34 billion.
-Write to Rory Gallivan at rory.gallivan@dowjones.com; Twitter:
@RoryGallivan
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