By Razak Musah Baba
LONDON--Associated British Foods PLC (ABF.LN) said Monday it
expects its clothing and grocery divisions to deliver strong
operating profit, offsetting the effects of lower sugar prices and
a strengthening of sterling.
"Strong operating profit performances from Primark and grocery,
and improvement in ingredients are expected to offset the adverse
effect of lower sugar prices and the impact of some 50 million
pounds ($83.4 million) on the translation of overseas results
arising from the strengthening of sterling," the diversified
international food, ingredients and retail group said in a news
release.
It still expects adjusted earnings per share for the full year
to be ahead of last year, although revenue and adjusted operating
profit for AB Sugar for the full year will be substantially lower
compared with the previous year, because of declining European
sugar prices, lower volumes in north China and a currency
translation impact on operating profit of some GBP20 million, it
said.
Sales at clothing unit Primark for the full year are expected to
be 17% higher on the year earlier at constant currency and 16%
ahead in actual exchange rates, it said. It expects like-for-like
sales growth of 4.5% for the full year.
AB Foods is expanding into the U.S. market and has signed a
lease for a 70,000-square-foot unit at Downtown Crossing in central
of Boston.
AB Foods, which includes Silver Spoon, Twinings, Ryvita and
Ovaltine among its brands, said negotiations are under way to
secure further stores in the north east, with the intention of
trading from up to 10 stores by late 2016.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
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