LONDON (dpa-AFX) - Associated British Foods Plc (ASBFY.PK, ABF.L) Monday said it expects first-half adjusted earnings per share to be broadly in line with last year, while there will be a small reduction in adjusted operating profit. Other than the expected reduction in Sugar revenue, sales growth will be delivered by all businesses.
For the full year, outlook for the group is unchanged with adjusted operating profit and adjusted earnings per share for the year expected to be in line with last year.
In its pre-close trading update for its interim results for the 24 weeks to March 2, the company said grocery revenue and operating profit in the first half are expected to be ahead of last year on an underlying basis.
AB Sugar revenue from continuing operations is expected to be lower than last year in the first half, in line with previous guidance. As a result, in the first half AB Sugar will record a marginal loss, but operating profit for the full year remains in line with our expectations.
In Agriculture, revenue in the first half will be ahead of last year with growth of UK compound feed sales through increased volumes and pricing due to higher commodity costs.
Ingredients revenues in the first half are expected to be ahead of last year, with progress in operating profit.
Retail sales at Primark are expected to be 4% ahead of last year in the first half, at both constant currency and actual exchange rates, driven by increased retail selling space partially offset by a 2% decline in like-for-like sales. With a much higher margin, profit is expected to be well ahead of the same period last year.
The first-half results are scheduled to be announced on April 24.
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