Associated British Foods (LON:ABF) has forecast a rise in earnings for the 2017-18 financial year, led by its Primark chain. The company has also flagged progress from its grocery, agriculture and ingredients divisions.
As of 13:38 GMT, AB Foods’ share price had added 0.70 percent to 2,872.00p, as compared with a 0.95-percent rise in the FTSE 100 index. The group’s shares have added about eight percent to their value over the past year, as compared with about a six-percent gain in the Footsie.
AB Foods flags retail profit rise
In a statement issued alongside its annual shareholders’ meeting, AB Foods said that with its Primark profits in line with that of the group’s last financial year, the company expected an increase in retail profit. The blue-chip further expects the fashion chain’s space expansion to continue.
The Primark owner further flagged progress from its Grocery, Agriculture and Ingredients, while cautioning that in Sugar, higher volumes and lower costs would only partially mitigate the effect of much lower EU prices.
“Taking all of these factors into account, at this early stage, we expect progress in adjusted operating profit and adjusted earnings per share for the group for this financial year,” AB Foods pointed out.
The company updated investors on its full-year performance last month, posting a rise in earnings, and flagging lower profits from its sugar business in the new financial year.
Analysts on AB Foods
As of December 2, the consensus forecast amongst 22 polled investment analysts covering AB Foods for the Financial Ties has it that the company will outperform the market. The 17 analysts offering 12-month price targets for the Primark owner have a median target of 3,400.00p on the shares, with a high estimate of 3,700.00p and a low estimate of 2,200.00p.