AB Foods Backs Fiscal Year 2023 Views After 1st Half Sales Rose, Although Profit Fell

By Michael Susin

Associated British Foods PLC said Tuesday that adjusted operating profit for the first half of fiscal 2023 fell, but backed its full-year guidance amid robust sales growth and less volatile inflation, and raised its dividend payout.

The British conglomerate posted an adjusted operating profit----which strips out exceptional and other one-off items--for the 24 weeks ended March 4 of 684 million pounds ($854 million) compared with GBP706 million for the year-earlier period.

The FTSE 100 listed company's revenue came in at GBP9.56 billion from GBP7.88 billion for the year-earlier period.

Primark sales rose to GBP4.23 billion from GBP3.54 billion, in line with guidance of around GBP4.2 billion.

The board declared an interim dividend of 14.2 pence a share, up from 13.8 pence declared a year ago.

The British conglomerate backed its full-year targets of adjusted operating profit and adjusted earnings per share to be in line with previous financial year. Adjusted operating profit for its food businesses is expected to be modestly ahead of last year, it added.

Primark expects to report 2023 like-for-like sales growth in the second half, although it is anticipated to moderate from the rate of growth reported in the first half, while adjusted operating margin is anticipated to be around 8.3%.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

April 25, 2023 02:37 ET (06:37 GMT)

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