LONDON--Associated British Foods PLC (ABF.LN), a diversified
international food, ingredients and retail company, said Monday
that the interim results for the group will be ahead of the
Company's expectations, adding that expectation for the full year
is unchanged and earnings growth for the full will therefore be
heavily weighted towards the first half.
MAIN FACTS:
-Adjusted operating profit will be higher than last year driven
by an outstanding performance from Primark.
-Earnings per share for the first half will be substantially
ahead of last year.
-Operating cash flow for the half year is expected to be
stronger than last year with higher profits, lower capital
expenditure, and a lower working capital outflow than is
traditionally the case in the first half benefiting from the higher
sales and good stock management at Primark.
-Net debt at the half year is expected to be more than GBP0.3
billion lower than a year ago at some GBP1.25 billion.
-Profit from Sugar in the first half will be lower than last
year with an improvement at Illovo more than offset by a decline in
China and a non-cash charge for the mothballing of the Company's
two smallest beet sugar factories in north China.
-U.K. revenue were ahead of last year with higher sales volumes
compared with last year's abnormally low level at the beginning of
the financial year, and marginally higher sugar prices.
-Revenue at Illovo benefited from higher production volumes with
increased cane yields and sugar content, particularly in South
Africa.
-Sales at Primark in the first half were exceptionally strong
and are expected to be 23% ahead of the same period last year and
25% ahead at constant currency. This was driven by very strong
like-for-like sales growth, a substantial increase in retail
selling space and superior sales densities in the larger new
stores.
-Associated British Foods shares in London closed Friday at
GBP18.30, valuing the company at GBP14.49 billion.
-Write to Razak Musah Baba at razak.baba@dowjones.com
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