Associated British Foods said on Monday it would deliver first-half revenue growth in all of its businesses, other than sugar, helping it to deliver earnings per share broadly in line with the previous year.
The group, which owns the Primark clothing chain as well as major grocery, agriculture and ingredients businesses, said it expected a small reduction in adjusted operating profit for the 24 weeks to 2 March, offset by lower net financial expenses.
AB Foods made an adjusted operating profit of £648 million (€975.66 million) in the first half of its 2017-18 year, with adjusted EPS of 61.3 pence.
Full-Year Outlook
For the full 2018-19 year the group's outlook was unchanged with adjusted operating profit and adjusted EPS expected to be in line with 2017-18's outcome.
The group said Primark's first-half sales were expected to be up 4%, with increased selling space partially offset by a 2% decline in like-for-like sales.
With a much higher margin, Primark's profit was expected to be 'well ahead' of the same period last year.
The group said early trading of Primark's new spring/summer range had been 'encouraging'.
AB Foods cautioned last year that profit in its sugar business would be significantly lower this year reflecting lower EU sugar prices for contracts negotiated at the end of the last financial year.
Brexit
It is "unbelievable" that the British government is contemplating leaving the European Union next month without a deal to smooth its exit, the finance chief of Associated British Foods, one of Britain's biggest food producers, said.
"For it even to be contemplated - a hard Brexit where you've got no arrangement with your major trading partners and when we're so reliant on them for the food supply chain - I find it unbelievable," John Bason told Reuters after a trading update on Monday.
"The consequences of getting this wrong for people are major and I want people to understand that," he said, adding a hard Brexit would be "irresponsible".
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
