Associated British Foods Share Discussion Threads

[andyh21] 04/2/2010 13:47

This is such a resiliant stock and a fantastic company! Can comfortably see £9.50 in the next couple of weeks, funds need a safe good pair of hands for their money!

[lbo] 29/1/2010 16:12

Profits, sales slump at Brown Thomas

[bb123] 28/1/2010 20:35

Hi Guys

Any views on this company? Lots of buyers but one big seller today.

Latest Trades
Time Price Volume Value Buy/Sell Type (key)
17:02 880.00p 248,176 £2,183,949 Sell NT

This comment was on IC today.

But a 5.3 per cent drop in own-label products manufactured by Premier for retailers dampened overall growth, and alongside higher input costs means full-year profits will be below market expectations.

[andyh21] 07/1/2010 14:37

Big offer for Primark on the way??

[jon827] 03/11/2009 07:37

I thought the results were good; revenue up, div increased, profits inline Hope we go up from here but with the market acting like it is who knows.

[jon827] 28/10/2009 19:42

Don't know if this is good news or bad news for ABF, at least there getting their Palm Oil on the cheap!

[jon827] 20/10/2009 08:33

Don't get this at the moment, Overall market rising, Sugar prices on fire, Demand for cheaper clothes never been so strong, but its just trades sideways. :-(

[jon827] 14/10/2009 15:29

got to be due a pop soon! results in a few weeks

[gateside] 09/7/2009 07:29

Good upbeat trading update out today.


Currency moves give AB Foods a lift

LONDON (SHARECAST) - Associated British Foods has seen year-on-year increases in revenue across the group in the first 40 weeks of its financial year.

The retail division, which comprises the clothing chain Primark, saw revenues rise 20% year-on-year (yoy) in the 40 weeks to 20 June 2009.

Revenue in the sugar division, which includes the Silver Spoon brand, saw sales rise 21% yoy over the same period.

The agriculture division's revenue rose 19% yoy, while grocery and ingredients recorded rises of 17% and 22% respectively.

The group as a whole saw revenue rise 19%, but growth slowed in the third quarter, with revenues rising just 15% in the 16 weeks to 20 June 2009.

The food businesses benefited from favourable exchange rate movements; at constant exchange rates group revenue was up 8% in the first three quarters.

"Trading for the group since the half year remains on track to deliver the anticipated progress in operating profit for the second half. We still expect little change in earnings for the full year as the increase in operating profit will be broadly offset by a higher interest charge," the company said.

[brain smiley] 13/5/2009 10:57

From FT:

While pressure in the sugar market is off, ABF faces headwinds in the form of higher buying costs at Primark and recessionary conditions in grocery. Credit Suisse is forecasting flat full-year pre-tax profit of £632m, and earnings per share of 55.15p. The shares, which rose 32p to 686p, trade on a forward price/earnings ratio of about 12, a premium to the food producers. While this is justified by the presence of Primark in the group, a higher mark-up would look excessive, given the challenges that remain.


FROM TIMES:


The near-term outlook is dull. Profits were flat at the half-year stage and are likely to be so over the next six months. However, on the assumption that a recovery in sugar will send next year's numbers sharply higher, the shares, up 32p at 686p, or 11 times earnings, should be held.

[acidman2] 12/2/2009 10:29

Looking very good value trading update just over a week

[gloria stits] 15/1/2009 12:11

Could be a nice bounce.

[gateside] 15/1/2009 08:11

Primark sales boost AB Foods

Associated British Foods said for the 16 weeks to 3rd January 2009, revenue was up 21%, up 15% at constant exchange rates, in line with expectations. The company highlighted a strong performance from Primark, with sales ahead 18%.

The group said revenue for the first 16 weeks was 21% ahead of the same period last year.

The weakness of sterling, particularly against the euro and US dollar, has been a major feature of the period with the main beneficiaries of currency translation being grocery and ingredients businesses.

The group revenue increase was 15% on a constant currency basis reflecting, in part, the flow-through of higher prices to recover input cost inflation last year.

Trading at Primark was strong and over Christmas was ahead of expectations. Sales were 18% ahead of last year reflecting the increase in retail selling space and very good like-for-like sales growth.

Sugar revenues were 20% ahead of last year driven by strong performances from British Sugar in the UK and Illovo. The UK business benefited from a much lower net energy cost. Both the UK and Poland have also benefited from the strength of the euro and firmer pricing than expected.

Profitability in China will be significantly reduced by much weaker sugar prices resulting from over-supply in the domestic market. The beet sugar business in the north east has been further affected by a smaller crop and lower sugar extraction. However, the first major capacity expansion for beet, at the Yi'an factory, was successfully commissioned in late December.

Agriculture businesses made a strong start to the year with revenue up 26% driven by higher prices, recovering higher input costs, and increased demand for specialist nutrition products.

Grocery revenue was 21% ahead driven by the benefits of favourable translation of the US and Australian businesses, the flow-through of higher prices and the acquisition of Jordans. Allied Bakeries has continued to trade well with an improvement in profit. In Australia, bakery margins have been impacted by consumers switching from premium branded to own-label products but the integration of the KR Castlemaine meat business is progressing in line with expectation. The profit outlook for Twinings Ovaltine remains unchanged but the rate of growth of premium teas, particularly in the UK and US, has slowed.

Lower consumer demand has resulted in weaker sales to the foodservice sector, particularly in the US and to ethnic restaurants in the UK.

At Silver Spoon price competition has impacted margins.

Sales volumes of breakfast cereals were lower than last year.

The ingredients businesses are almost entirely located outside the UK and the translated results have benefited significantly from the weakness of sterling against the US dollar and the euro. Revenue was 25% ahead but at constant currency was only 8% higher. The yeast and bakery ingredients business is trading well with higher volumes and improved pricing.

Cashflow for the period benefited from better than forecast working capital and lower capital expenditure, although capital expenditure remained higher than last year. This had a positive impact on the group's net debt but the effect of currency translation on the US dollar and euro denominated borrowings resulted in slightly higher sterling net debt at 3rd January 2009 than forecast.

AB Foods said it will not be immune from the worsening economic climate and particularly the pressure on consumer spending. It has budgeted for little change in net earnings for the full year and still anticipates results in line with that expectation.

[ttg100] 26/11/2008 15:24

banked the money
needed to offset other loses !!
GL all.

[liarspoker] 25/11/2008 19:32

Just watch out for the rates of internal returns here Gateside. I see that they have a 5% return on retained profit. Not good imo as I was expecting a return of around 15%. Doesn't matter much for traders but it does for long term holders such as yourself.

[gateside] 25/11/2008 18:41

But with falling commodity prices, they will be able to produce their grocery products cheaper and make more profit. This is a well balanced business.

[ukneonboy] 25/11/2008 18:03

profit margins under pressure due to falling commodity prices especially sugar beet.

Take profits and exit food manufacturing fast !!!!

[shazzieb] 04/11/2008 15:37

In this economic climate its good to see a company with good results. I thought this would have reflected in the share price ..........up in the blue not in the red

[gateside] 04/11/2008 09:27

AB Foods reported results for year ended 13th September 2008, with revenue up 21% to £8.2bn.

Adjusted operating profit was up 7% to £664m and adjusted profit before tax up 3% to £632m. Adjusted earnings per share were up 4% to 54.9p.


The company raised dividends per share by 4% to 20.25p.

George Weston, CEO of Associated British Foods, said, 'These good results demonstrate the resilience of the group. Consumer spending in many parts of the world has been under pressure for some months. Despite this, Grocery, Agriculture and Primark all delivered strong sales and profit growth. While faced with a general economic downturn, we remain committed to the group's expansion and development, most notably in Sugar and Primark.'

[ttg100] 06/10/2008 13:56

left a buy order bit lower down.

[mali7] 19/9/2008 09:48

Its worrying to know which other sectors shorters will target now. With financial being saved, looks like they will soon be the most secure form of investment. Any ideas anyone?

[mali7] 12/9/2008 15:39

Primark goods which mainly come from Bangladesh have increased in cost by about 15-20%. How will this effect ABF?

Rate on 15th July : £1 = 138 Taka (mainly trading in the range of 135-140 for last 1yr or so)

Rate now: £1 = 120 Taka, so goods are more expensive now for Primark. (Mainly due to Dollar improving)

Sales may hold on during credit crunch, but if Primark keeps their low prices, with cost increased it will effect their margains in comming moths. Any thoughts?