Associated British Foods Lifts Fiscal Year 2024 Guidance After 3Q Revenue Growth

By Joe Hoppe and Elena Vardon

Associated British Foods on Monday raised its full-year adjusted operating guidance as it posted an increase in revenue for the third quarter and said that its retail activity Primark has continued to trade in line with its expectations.

The British conglomerate posted revenue for the 12 weeks ended May 27 of 4.73 billion pounds ($6.01 billion), up 16% compared with the same period a year ago on a constant currency basis.

The FTSE 100 listed company said Primark revenue increased 13% to GBP2.00 billion, supported by higher average selling prices and the good performance of its summer ranges.

Total food businesses revenue rose 18% to GBP2.73 billion driven by pricing actions taken to recover input cost increases, it said.

AB Foods said it continues to trade well and now expects its full-year adjusted operating profit to be moderately ahead of last year's and its adjusted earnings per share to be below that seen in the first half--when it posted 62.0 pence--as it will benefit from a group effective tax rate.

The group had previously guided for adjusted operating profit and adjusted earnings per share to be in line with the prior year, when it posted GBP1.435 billion and 131.1 pence respectively.

Write to Joe Hoppe at [e-mail]

(END) Dow Jones Newswires

June 26, 2023 02:39 ET (06:39 GMT)

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