Associated British Foods reported a 32% rise in full-year profit, with a robust performance from its grocery division and a solid outcome from its Primark clothing business partially offset by accelerating weakness in its sugar operations.
In the year to 14 September, the AB Foods' adjusted operating profit, its preferred earnings measure, rose to £2 billion (€2.4 billion) from £1.51 billion (€1.8 billion) in 2023/24. Revenue climbed 2% to £20.1 billion (€23.9 billion).
Looking ahead, the group said that overall it is 'well-positioned'.
Caution On Sugar
However, it reiterated its caution on sugar due to a recent reduction in European sugar pricing. It forecast adjusted operating profit for sugar in 2024/25 to fall to between £50 million (€59.6 million) and £75 million (€89.4 million) from the £199 million (€237.2) made in 2023/24, before recovering in the following year.
The group said Primark is targeting mid-single percentage digit sales growth in 2024/25, with adjusted operating margin in line with the 11.7% achieved in 2023/24.
In the grocery division, the group saw sales up 4% and adjusted operating profit up 17%, reflecting strong margin improvement overall.
AB Foods added that it will continue to drive sales momentum in the grocery segment in the new financial year and expects continued growth in yeast and bakery ingredients and improved growth in specialty ingredients.
'Financial And Operational Progress'
George Weston, chief executive of Associated British Foods, stated, "This was a year of very strong financial and operational progress across the group. We delivered a substantial improvement in profitability, excellent cash generation and strong returns as a result of consistent, multi-year investment and a return to some normality in our markets and supply chains. Above all, these results reflect the excellent work and disciplined focus of our people."
News by Reuters, additional reporting by ESM.
