By Jana Simmons
LONDON--Associated British Foods PLC (ABF.LN) on Tuesday
reported a rise in full-year pretax profit as growth in the
company's clothing and grocery divisions offset the effects of
lower sugar prices and a strengthening of sterling.
Pretax profit in the 52 weeks to Sept. 13 rose to 1.0 billion
pounds ($1.6 billion), from GBP868 million in the same period last
year. Revenue fell slightly to GBP12.9 billion, from GBP13.3
billion. At constant currency rates, revenue would have been up by
1%. The dividend rose 6% to 34.0 pence per share.
Profit at AB Food's Primark clothing division was up by 30% at
constant currency.
"Significant progress was achieved in operating profit by
Grocery, Agriculture, Ingredients and Primark, all of which
substantially out-performed last year," said Chief Executive George
Weston. "Much lower sugar prices in the E.U. held back the group's
profit growth although, operationally, Sugar performed well."
In the coming year, with the continuing fall in E.U. sugar
prices and volatility in the world sugar price, the company expects
a further large reduction in profit from AB Sugar. At this early
stage, Associated British Foods said it expects a marginal decline
in adjusted operating profit for the group but the impact on
earnings will be mitigated by much lower tax and interest
charges.
Shares closed Monday at 2,671.0 pence.
Write to Jana Simmons at jana.simmons@wsj.com
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