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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Associated British Foods Plc | ABF | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 28.00 | 1.06% | 2,671.00 | 16:29:53 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2,656.00 | 2,636.00 | 2,674.00 | 2,671.00 | 2,643.00 |
| Industry Sector |
|---|
| FOOD PRODUCERS |
| Top Posts |
|---|
Posted at 19/1/2024 19:24 by philanderer This coming Tuesday it will provide an update on trading for the first four months of its financial year to September."AB Foods is unlikely to discuss wider capital allocation issues until its first-half results in April," said analysts at AJ Bell. The outlook for 2024 is likely to be a key focus for investors and analysts, with sales currently expected to rise 5% for 2024. This time last year the first four months of fiscal year saw £6.7 billion sales, of which £3.55 billion was from food and the rest from Primark. For the whole of 2024, AB Foods has already suggested that Primark will show a modest increase in like-for-like sales and a larger increase in stated sales, thanks to store openings and its online roll-out. The adjusted operating margin at the retailer is expected to exceed 10%, compared to the 8.2% earned in fiscal 2023. Sugar is expected to deliver a substantial increase in profits, Agriculture will increase adjusted operating profit, Grocery to come in with broadly flat profits and Ingredients to show a modest decrease in sales and earnings. "More strategically, watch out for an update on Primark’s store opening plans in Europe and America in fiscal 2024, as it targets 530 stores by 2026 from the current count of 432, and also on its online roll-out, as well as comments on input cost inflation and pricing across all of its operations," said AJ Bell. proactiveinvestors.c |
Posted at 22/11/2023 16:55 by philanderer Associated British Food price target upgrade underpinned by strong fundamentals, says investment bankLiberum, the investment bank, has upgraded its price target for Associated British Foods PLC (LSE:ABF) from £24 to £28 per share, maintaining a 'buy' recommendation reflecting its confidence in ABF's strong trading performance and its effective capital return strategy. Since upgrading to buy in June, Liberum said ABF has registered an 11% increase in earnings per share (EPS), with 8% coming from enhanced trading activities and 3% from strategic share buybacks. It notes that ABF's commitment to shareholder value is further evidenced by its announcement of an additional £500 million share buyback program and a special dividend of 12.7p per share, amounting to approximately £100 million. The bank also highlights that ABF's capital allocation framework is designed to facilitate cash returns to shareholders when leverage, including lease liabilities, is below one-times. ABF's current leverage ratios are well within this limit. Liberum points out that the positive trading outlook for ABF is supported by various factors, including margin tailwinds, capital release in Primark, strong growth in the Sugar segment, and lower inflation across the group. In the Sugar sector, Liberum forecasts a significantly brighter outlook for the fiscal year 2024, driven by high sugar prices, reduced energy costs, and a normal crop season, which are expected to boost profits at British Sugar and Azucarera. Additionally, Vivergo is projected to reach a break-even point after substantial losses in the past two years, as per Liberum's analysis. The £500 million buyback program and the special dividend, as Liberum observes, reflect management’s confidence in ABF's future free cash flow (FCF) generation. Liberum estimates that ABF has the capacity to sustain such levels of cash returns regularly. In the Retail division, Liberum forecasts a return to approximately a 12% earnings before interest and taxes (EBIT) margin from 8% in the fiscal year 2023, aided by price increases, favourable foreign exchange impacts, and reductions in input and freight costs. Liberum also anticipates benefits from operating leverage and automation in future years. Finally, the bank expects ABF to deliver a 5.9% free cash flow yield on its current market capitalisation in the fiscal year 2024, compared to 2.2% in the fiscal year 2023. The company's shares are currently trading at a price-to-earnings (PE) multiple of 12.8 times and an enterprise value to earnings before interest, taxes, depreciation, and amortisation (EV/EBITDA) multiple of 7.0 times for the fiscal year 2024. This valuation, according to Liberum, represents a circa 30% discount to the 10-year average multiples, indicating a significant upside potential for investors and justifying the increased price target and 'buy' stance. proactiveinvestors.c |
Posted at 07/11/2023 19:38 by philanderer Investors Chronicle:Associated British Foods reveals surprise special dividend More selling space looks set to boost Primark sales further in the year ahead HOLD |
Posted at 13/9/2023 00:14 by philanderer Analysts at investment bank Shore Capital raised their earnings per share forecast for 2024 by 8 per cent to 165p and argued that ABF is undervalued, "especially in a higher base rate environment".The full-year results are scheduled for release on 7 November. Investors Chronicle |
Posted at 08/9/2022 21:22 by m_kerr right, but on a sum of the parts basis primark is almost chucked in for free.primark's historic operating margin is 10-12%, and here they are saying it will be about 7%, so not a bad result IMV. the disappointing thing that i think investors picked up on is that cash generation was poor due to a working capital build up, and due to the extremely conservative leverage policy, there won't be a chunky dividend. more a bump in the road than existential threat i think. conglomerates can be broken up over time, just look at DMGT, timing is out of our control, but in the end a gap between price and value at these extremes will not last forever. this is a very well run company with a strong balance sheet, and it almost entirely caters to needs not wants. |
Posted at 27/7/2022 18:00 by m_kerr IMV the efficient operating model of primark will come into it's own now. online rivals are barely making money, yet primark undercuts them hugely and makes a 10% margin. online retailers are also now going to be charging for returns, which will dent volumes - who knows how much, but it makes people think twice before buying. asos's £10 unlimited free delivery for a year is also clearly unsustainable. amazon now charge at least £95 for the same albeit they do offer other services for that membershipinvestors aren't interested in businesses that consistently lose money any more. valuation and track record matter. |
Posted at 26/5/2022 20:19 by m_kerr maybe poverty is the better term, but yes poverty is widespread nowadays, and people in poverty are no good to investors as they can't afford to participate much in the economy. and of course a bill going from £1000 to £2100, to £2800 isn't covered by a £400 subsidy, nowhere near. |
Posted at 16/11/2021 17:07 by m_kerr in this world of low interest rates, that £1.9bn net cash is shareholders capital earning 0.1%. with an A grade credit rating they can access debt on extremely favourable terms. overall ABF is well run, but they are missing a trick here. it's not short termism to take on a higher level of debt, if that capital is well invested. for new investors, the shares are attractive, but for existing shareholders, they've seen no capital growth in 8 years now. at least part of the reason for that is the over diversification. if they spun off or sold sugar, earnings would be far more predictable and would be rewarded with a significantly higher share price. |
Posted at 21/7/2021 13:53 by philanderer Shore Capital excited by Primark’s digital journeyPrimark-owner Associated British Foods (ABF) is addressing its weak spot by developing a digital offering for the low-cost retailer, says broker Shore Capital. Analyst Clive Black said that within the company’s positive trading update earlier this month – which spurred ‘healthy upgrades’ to medium-term profit forecasts – there was ‘one notable paragraph on Primark’s evolving digital plans’. ‘We felt this to be significant as we believe it represents a potential threshold for this currently offline-only value retail powerhouse. That Primark outperformed the total UK apparel market following reopening post lockdown 3.0 (ie including online) is testimony to the power of the Primark brand,’ said Black. The analyst said they still see many years of offline growth ahead, noting the opening of store number 12 in the now profitable US market. ‘The lack of an online presence at Primark has soured the thesis of ABF for some investors and so the start of a digital journey is welcome to us. Domestic online competition, watch out!’ he added. Black reiterated his ‘buy’ recommendation and, with digitisation building, the view that the stock is ‘grossly undervalued’. |
Posted at 28/4/2021 22:12 by netcurtains Just seen the Equiniti takeover by an American hedge fund looks as if it is going ahead.Also Hong Kong investors swooped on brewer Greene King. I don’t usually even get a vote but if I do I will vote against it. We have sold off too much British industry and know how on the cheap. Stand up for more shareholders’ democracy. |
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