By Tapan Panchal
LONDON--Associated British Foods PLC (ABF.LN), a food and retail
group, Tuesday reported a 4% fall in adjusted pretax profit for the
first half of its financial year, and said that it now expects a
modest decline in adjusted earnings per share for the full
year.
Earlier in February, AB Foods said it expects a marginal decline
in adjusted earnings for the full financial year due to weak sugar
prices and the negative impact from the strengthening of sterling,
partly offset by continuation of good performance at its Primark
clothing retail chain.
For the 24 weeks ended Feb. 28, the FTSE100 listed company
reported a profit, before tax, amortization of non-operating
intangibles and profits less losses on the disposal of non-current
assets and exceptional items, of 450 million pounds ($672.08
million), down from GBP468 million in the same period a year
earlier. Pretax profit for the period totaled GBP213 million, down
from GBP434 million.
Group revenue for the period amounted to GBP6.25 billion, up
from GBP6.21 billion. Sales at Primark, which contributes around a
third of the company's group revenue, rose by 12% to GBP2.55
billion.
AB Foods, which also owns Twinings tea, Kingsmill bread and
Silver Spoon sugar brand, said it will raise its interim dividend
by 3% to 10.0 pence per share.
Write to Tapan Panchal at tapan.panchal@wsj.com
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