Associated British Foods Share Discussion Threads

[netcurtains] 26/4/2022 07:55

#FTSE100 its worth remembering that 5m young working age refugees entering the EU from Ukraine is actually an economic stimulus to the EU. Its another 5m consumers all spending about 30k a year, and the associate economic multiplier effect on the original sum. Its big money.

[kirmich] 26/4/2022 07:22

you never know on the stock market, but this has to be good no? what a set of results. I think they know how to manage Primark, despite all the comments from analysts. If you would have to buy one company for the next 10 years for capital preservation, this is the one no?

It will probably go down again today, but then i will be buying a bit more.

[justiceforthemany] 24/4/2022 10:07

Trading at levels not seen in about a decade.

[fuji99] 20/4/2022 13:11

A very solid defensive stock to own in any balanced portfolio. In tough times, with higher inflation, people have tendency to buy where prices are accessible. Thus why Primark is doing so well. In addition as a diversified group, it is exposed to agriculture which will play a major role in food safety for at least the next decade.
"First-half Primark revenues are expected to be well over 60% ahead of last year” at constant currency rates. We’ll have more details about this – and progress at the group’s other businesses – when the interim results are released on 26 April 2022."
Adding a steady dividend, this is strong buy to me.

[thecomposer] 14/4/2022 17:02

"Why ABF's share price is cheap and attractive right now":

"This one-time FTSE 100 favourite has been through some tough times, but the future is looking much brighter and the shares are cheap"

[philanderer] 14/4/2022 15:34

Added a few.

[philanderer] 11/4/2022 10:12

Jefferies cuts AB Foods price target to 2,000 (2,700) pence - 'buy'

[m_kerr] 07/4/2022 17:06

won't happen IMV. click and collect costs money but customers expect it for free (like they do with delivery too). when you're paying such low prices, it's only possible for Primark to make a profit because you pick the stuff up off the shelf and take it home yourself.

[acer101] 07/4/2022 13:01

If they have a live inventory of stock per store, surely next would be to enable customers to click and collect.

[philanderer] 07/4/2022 12:56

Primark gets new website but customers still can't purchase clothes online


The retailer says it knows that customers want to "browse the latest collections online and be able to check availability, which is what our new website makes possible for the first time."

[m_kerr] 06/4/2022 22:00

i thought this was oversold at £19 - 20 a share.

reminds me of DMGT a few years back. a hotchpotch of assets that at one point was trading at only about 5-7 times earnings with low debt.

primark traded at 100% levels of pre covid trading when the estate was fully open last year. it will probably make £600-800m of EBIT this FY. even if food falls by 20%, that's around £1250m of EBIT, i.e. about 10-11 x EBIT. cheap as chips.

[phillis] 06/4/2022 19:06

Porsche

Try reading the RNSs

For the half year, we expect sales and adjusted operating profit for the Group to be strongly ahead of last year. Furthermore, we expect sales and adjusted operating profit to be ahead of the pre-COVID levels achieved in the half year to 29 February 2020.

Primark sales for the first half are expected to be well over 60% ahead of last year at constant currency with an operating profit margin of some 11%. This reflects the fact that all our stores remained open and trading throughout the period except for short periods in Austria and The Netherlands. The effect of inflation on raw materials and the supply chain in Primark this first half has been broadly mitigated by a reduction in store operating costs and overheads and a favourable US dollar exchange rate. Like-for-like sales improved compared to the final quarter of our 2021 financial year.

[philanderer] 06/4/2022 15:04

Less spare cash to spend these days.

[djb3] 06/4/2022 14:14

Yeah just bought a few - now oversold.

[suetballs] 06/4/2022 10:25

The share price here is getting silly / not a loved share.
Suet

[philanderer] 06/4/2022 10:04

Barclays cuts AB Foods price target to 2,500 (2,700) pence - 'overweight'

[m_kerr] 04/4/2022 21:25

the UK only accounts for around half of primark's sales / selling area, and as expansion abroad ramps up, makes up a declining share. sales are expected to be 4% lower than pre covid levels, not great, but hardly panic stations, and well ahead of the sort of hospitality stocks that have been market down to the same degree as ABF. we'll see where sales settle at in the coming years, but i'd expect them to win market share in an inflationary environment, especially as they own 30% of their freeholds, and are far better capitalised than their competition.

on food, well operating profit was up 10% YOY to around £750m so it's likely that as a standalone company they'd be valued at somewhere around £10-12bn at least. they now have almost £2bn in net cash, giving them flexibility and firepower to navigate tough economic conditions. so all in all that sounds pretty defensive to me.

[porsche1945] 04/4/2022 11:21

Traded this in and out for quick profits but gobsmacked what a terrible share price performance over 12 months even by dog index of the world ftse 100 measure. It should have been a go to defensive stock, it hasn’t been, there is the fast fashion/esg thing plus the bricks and mortar retail is a problem, it’s in terminal decline, if it’s on the High St in U.K. it’s fxcked. If this can’t perform better tho in an environment where it should be outperforming then it’s a strong sell, not a buy. Take out an anaemic recovery in U.K. oil stocks, a handful of miners and Astra and the rest of the index back at covid/brexit fiasco sell off levels. Really dire.

[m_kerr] 30/3/2022 22:03

it's not possible to make money selling at primark price points online.

as long as they pass the savings of their business model to customers, i think they have a good business. it's the only 'non essential' (although some would argue the provision of affordable clothing is essential) retailer i can think of where there were queues during lockdown.

almost all the growth now in primark is abroad, where having succeeded in the most difficult and competitive market (UK), they are expanding to countries with fewer strong competitors where growth is far easier to come by. hence why they do great business in a number of European countries, and they have a clear growth runway for the next 10 years at least.

[farmerjohn1] 24/3/2022 20:18

I also concur. Business here is now extremely well diversified with superb balance sheet already in place (along with Zero debt), post Pandemic prospects are looking very bullish, share price here will be back in £20+ levels (and more) by Q3 IMO.

[mastey] 24/3/2022 16:18

Have to agree cashisking. I am underwater however about to add. The market is obsessed with its lack of online presence of Primark however ABF margin IMHO will survive as online margin will be under pressure. Also market worried re wheat prices however again overplayed in my view.

[cashisking76] 24/3/2022 13:22

ABF share price is now too cheap to ignore and is clearly way too oversold at the moment, hence, just bought in here and joined the ABF party today, will certainly continue to add more at these depressed oversold levels, GLA.

[philanderer] 16/3/2022 12:31

Bank of America cuts AB Foods price target to 1,765 (1,900) pence - 'underperform'

[tlobs2] 14/3/2022 09:49

They should implement a share buy back using some of their huge cash reserves whilst the share price is so low.

[essentialinvestor] 11/3/2022 19:06

net, referring to the price earnings multiple.