Associated British Foods' First-Half Net Profit Rises
April 19 2016 - 3:02AM
Dow Jones News
By Rory Gallivan
LONDON--Associated British Foods PLC (ABF.LN) Tuesday reported a
rise in interim net profit as it benefited from an improvement at
its sugar business and a good performance in its fashion retail
sales.
The food and ingredients supplier, which also operates the
fashion chain Primark, posted a net profit of 357 million pounds
($507.2 million) for the 24 weeks ended Feb. 28, up from GBP124
million the previous year, on revenue down to GBP6.12 billion from
GBP6.25 billion amid currency effects.
Adjusted earnings per share were in line with the previous year
at 46.1 pence, ahead of ABF's prediction in January that they would
be slightly lower. The company also lifted its dividend by 3% to
10.3 pence.
"These results demonstrate underlying progress for all of our
businesses in the period despite currency," said Chief Executive
George Weston.
"Good buying and selling space expansion continued at Primark,
cost reduction and performance improvements contributed to a better
result at Sugar, profits were well ahead at Ingredients, and profit
margins improved at Grocery and Agriculture," he said.
ABF said its underlying outlook for the previous year is
unchanged, but it now expects only a marginal decline in adjusted
earnings per share for the group for the full year. The company in
January predicted a "modest" decline in adjusted earnings for the
full year.
ABF supplies food ingredients including sugar and enzymes and
also owns food brands such as Ryvita crisp bread and Twinings tea.
Primark employs 61,000 people and has stores in the U.K., mainland
Europe and the U.S.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
April 19, 2016 02:47 ET (06:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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