- AB Foods reported a revenue of GBP9.51 billion for the first half of the year, a decline of 2.3% year-on-year.
- Adjusted operating profit stands at GBP835 million, showing a decrease of 12% compared to the previous year.
- Adjusted pretax profit fell by 10% to GBP818 million.
- The interim dividend per share remained unchanged at 20.7p.
- Net debt increased by 11% year-on-year to GBP2.77 billion.
- The number of total stores is reported at 459, slightly below the estimated 468.2.
- Primark’s retail selling space is 19.1 million square feet, slightly less than the estimate of 19.25 million.
- Primark’s comparable sales declined by 2.5%, which is worse than the estimated decline of 1.64%.
- Primark aims for low-single digit sales growth for the full year despite challenges.
- The full-year group outlook remains unchanged, except for the Sugar sector, which is affected by the US tariff impact in the second half.
- Primark expects the full-year 2025 adjusted operating profit margin to be broadly in line with last year’s level.
- The adjusted operating margin for Primark in the second half is projected to be lower than the first half.
- The Sugar segment forecasts an adjusted operating loss of up to £40 million due to low European sugar prices and losses in its UK bioethanol business.
Associated British Foods on Smartkarma
Analyst coverage of Associated British Foods on Smartkarma has been positive, with Baptista Research initiating coverage on the company. The research report titled “Associated British Foods: Initiation of Coverage- Automation & Labor Efficiency As A Pivotal Factor Driving Growth!” highlights the strong financial performance of ABF for the 52 weeks ending 14th September 2024. The report mentions substantial profit and cash flow improvements across ABF’s diversified portfolio, with a notable 38% increase in operating profit and a 39% climb in adjusted earnings per share. Cash generation also surged to GBP 1.4 billion, a GBP 1.1 billion increase from the previous year, reflecting positive operational and financial advancements.
A look at Associated British Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Associated British Foods PLC, a diversified international food, ingredients, and retail group, is looking towards a promising future based on its Smartkarma Smart Scores analysis. With strong scores in Growth and Momentum categories, the company is poised for long-term success in the industry. These scores indicate a positive outlook for the company’s expansion and its ability to maintain its upward trajectory in the market.
The Value, Dividend, and Resilience scores, although not as high as Growth and Momentum, still show a solid foundation for Associated British Foods. The company’s presence in various regions across the globe further enhances its potential for growth and stability. With a strategic focus on innovation and market adaptability, Associated British Foods is well-positioned to further solidify its position in the international market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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