AB Foods share price: Interim revenue up 19 percent

on Apr 19, 2017
Updated: Oct 21, 2019
Listen

Associated British Foods (LON:ABF) has updated investors on its interim performance this morning.

**Highlights from the company statement:**
George Weston, Chief Executive of Associated British Foods, said:

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

“The underlying growth of the group at constant currency was strong in the first half. Primark delivered a substantial increase in selling space which, together with its strong consumer offering, contributed to a further increase in our share of the total clothing market. Furthermore, we achieved a more acceptable rate of return in Sugar and further good progress was made by our Ingredients and Grocery businesses.”

CHAIRMAN’S STATEMENT

I am very pleased to report excellent progress across the whole group in the period. Revenue of £7.3bn in the first half was 19% ahead of last year and adjusted operating profit of £652m was 36% ahead. This growth includes the benefit of the devaluation of sterling on the translation of our overseas results. The total increase of £171m in adjusted operating profit included £51m of currency benefit. The underlying growth of the group was therefore strong with revenue up 7% and adjusted operating profit up 23% at constant currency.
Dividend

The board has declared an interim dividend of 11.35 pence per share, an increase of 10% on last year. The dividend will be paid on 7 July 2017 to shareholders registered at the close of business on 9 June 2017.

Outlook

The growth in earnings achieved in the first half has been excellent. We expect the underlying revenue momentum in all of our businesses to continue in the second half. However, profit growth in the second half will, at current exchange rates, be tempered primarily by a smaller translation benefit and the full effect of the devaluation of sterling against the US dollar on Primark’s margin.

Our outlook for the group’s full year results has improved and we now expect to report good growth in adjusted operating profit and adjusted earnings per share.
As of 07:06 BST, Wednesday, 19 April, Associated British Foods plc share price is 2,711.21p.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Food & Beverage Manufacturing Retail Stock Market