LONDON-- Ingredients maker and Primark fashion retailer
Associated British Foods PLC (ABF.LN) said Monday that adjusted
operating profit for the second half will be ahead of expectations
delivered by a strong finish to the year from Primark.
MAIN FACTS:
-Adjusted earnings per share for the full year will show good
progress.
-Despite the adverse effect of currency movements on the
translation of foreign currency borrowings, year end net debt is
expected to be some 0.9 billion pounds compared with GBP1.1 billion
last year.
-Sales at Primark for the full year are now expected to be 22%
ahead of last year at actual exchange rates, which benefited from
the recent strengthening of the euro, and will be 21% ahead at
constant currency.
-This result was driven by an increase in retail selling space,
like-for-like sales growth which is expected to be close to 5% for
the full year, and the superior sales densities in the larger new
stores. The strong trading over the summer also resulted in lower
markdowns and the second half margin will now be in line with the
first half, beating expectations.
-During this financial year company will have opened 16 new
stores; expect to add more than a million square feet of selling
space in the new financial year.
-Revenue and adjusted operating profit for AB Sugar for the full
year will be in line with management expectations.
-Sugar: current negotiations with E.U. customers regarding
prices for the 2013/14 marketing year are proving challenging.
-Agriculture has built on its strong performance in the first
half and will deliver full year revenues and profit substantially
ahead of last year.
-Grocery revenues continued to improve during the second half
and will be ahead of last year for the full year.
-Ingredients revenue for the full year is expected to be ahead
of last year and underlying operating profit in line.
-Shares closed Friday at 1,851 pence valuing the company at
GBP14.65 billion.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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