Associated British Foods Share Discussion Threads

[suetballs] 27/9/2017 10:37

uk sugar quotas abolished. Good for abf?
Suet

[city chappy] 22/9/2017 14:25

What's the post Brexit outlook here?

[philanderer] 19/9/2017 07:21

Credit Suisse. ... Outperform. ... Tp 3600p

[philanderer] 18/9/2017 20:47

Berenberg raises tp to 3200p from 3100p .....retains HOLD

[philanderer] 12/9/2017 13:23

Primark is close to leapfrogging Next as the UK’s second biggest clothing retailer behind Marks & Spencer

[philanderer] 12/9/2017 09:21

12th sept Soc Gen buy tp 3600p up from 3400p
12th sept S&P Global strong buy tp 3500p up from 3400p
12th sept JP Morgan Caz overweight tp 3600p up from 3300p
12th sept Deutsche buy tp 3500p
12th sept Jefferies buy tp 3600p

[philanderer] 12/9/2017 00:32

Why is Associated British Foods struggling on strong Primark performance?


Associated British Foods (ABF) continues to reap the rewards from shopping phenomenon Primark. Adjusted operating profit is expected to rise yet investors are focusing on the underperforming groceries division.

Grocery revenues are expected to be level with last year, but adjusted operating profit is anticipated to be lower in the year to 30 September 2017. The news has acted as a drag on the stock, down 3.6% to £31.51.

Margins at Allied Bakeries are suffering as a ‘very competitive UK bread market’ and inflationary cost pressures hit margins.

WHY IS PRIMARK PERFORMING WELL?

Liberum analyst Robert Waldschmidt says Primark’s full year margins in 2018 are expected to be similar to the prior year.

He flags that strong demand and favourable weather has increased demand and reduced markdowns, helping to offset the impact of the weaker pound against the US dollar.

Sales at Primark for the year to 16 September 2017 are expected to rise 13% when currency fluctuations are stripped out thanks to increase retail selling space.

Operating profit is expected to rise to £1.4bn in the year to 30 September 2018 and £1.56bn in 2019. The company currently trades on 21.8 times forecast earnings per share for 2018.

[philanderer] 11/9/2017 20:46

So that's why then ...

Primark owner Associated British Foods fell 162p to 3,103p although the company upped its full-year outlook. AB Foods now expects full-year sales at Primark to rise 13 per cent on a constant currency basis, with the UK seeing particularly strong turnover growth of 10 per cent.

However, investors were disappointed with a warning that the pound's collapse was pushing up import costs for the low-cost retailer


Read more:

[philanderer] 11/9/2017 14:28

'Pink flamingos boost Primark sales and ABF forecasts'

[philanderer] 11/9/2017 13:25

The Share Centre:

The shares were down 1.8% in early trading this morning, but are up by over 30% since the end of January. We continue to recommend Associated British Foods as a ‘hold' for medium risk investors as the longer term growth prospects for Primark remain sound, there is increasing global demand for food and there are signs of improvement in the sugar business.

[philanderer] 11/9/2017 13:18

Harry Potter clothing helps boost sales at Primark

[philanderer] 11/9/2017 12:37

'Margins take sweetness off AB Foods update'

Associated British Foods has upped its full-year guidance after a good performance at its Primark operation. However, margins are under pressure following sterling’s slide

[philanderer] 11/9/2017 12:24

Morgan Stanley and Citi notes here :

[philanderer] 11/9/2017 11:35

This share price reaction is very disappointing.

[philanderer] 11/9/2017 11:08

11th sept Barclays equal weight tp 3250p up from 3150p


GOLDMANS 'BEST OF BRITISH STOCK IDEAS' BUY: SHELL, HUNTING, AB FOODS

[philanderer] 11/9/2017 10:13

The company is "well ahead of last year", according to Hargreaves Lansdown analyst George Salmon.

He added on what the results mean for the rest of the struggling high street:

"The UK has been singled out as performing particularly strongly, which would normally have positive read-across for the rest of the clothing sector. However, this probably isn’t the case this time.

"We feel Primark’s good domestic performance is more a sign the UK consumer is tightening the purse strings and moving down the value chain as inflation outstrips wage growth."

[philanderer] 11/9/2017 09:43

Davy Stockbrokers:

DAVY VIEW

Associated British Foods (ABF) has released a positive pre-close trading update. The statement is broadly consistent with the Q3 update except for a stronger-than-expected margin performance at Primark and healthier net cash position for the group of £650m (Davy: £331m). We expect no material change to our forecasts. Overall, earnings momentum remains positive at ABF.

[philanderer] 11/9/2017 09:40

AJ Bell Investment Director Russ Mould....

“Associated British Foods expects full-year adjusted operating profit to be well ahead of last time. Markdowns at its clothing chain Primark have been lower than expected and like-for-like sales have increased. Profit margins, though, have been squeezed due to the stronger US dollar and higher costs and ABF’s shares were down by over 1% in early trading.







FTSE 100 Fallers


A.b.food (ABF) 3,201.00 -1.96%
Randgold Res. (RRS) 8,005.00 -1.48%
Fresnillo (FRES) 1,603.00 -1.11%
Bt Group (BT.A) 283.05 -0.32%
Johnson Matthey (JMAT) 2,898.00 -0.24%
Gkn (GKN) 328.60 -0.12%
Tullow Oil (TLW) 159.80 -0.13%
Weir Grp. (WEIR) 1,796.00 -0.11%
Cocacola Hbc Ag (CCH) 2,661.00 -0.08%

[philanderer] 11/9/2017 09:13

11th sept Kepler buy tp 3300p
11th sept Liberum buy -
11th sept ShoreCap buy -

[philanderer] 11/9/2017 08:42

Pretty well rock solid. I wish all my holdings were as reliable ;-)

[tlobs2] 11/9/2017 07:38

Excellent results. Well done to all.

:-)

[broadwood] 11/9/2017 07:36

- Associated British Foods expects adjusted operating profit to be well ahead of last year.

In its third quarter update in July the group reported an improvement in its expectation for the full year underlying operating performance as a result of a stronger profit delivery from Primark.

But a pre-close update today said that since then it had experienced an even lower level of markdown which had further improved the full year outlook.

It said: "Net interest expense will be at a similar level to last year and, as previously explained, an increase in other financial expense will reflect the impact of last year's fall in bond yields on our UK defined benefit pension scheme.

"The underlying tax rate for the full year will be slightly lower than that of the first half and, as expected, will be higher than last year which benefited from the revaluation of UK deferred tax liabilities following the announced reductions in the UK corporation tax rate.

"In summary, we expect to report good growth in adjusted operating profit and adjusted earnings per share for the group for the full year."

[suetballs] 11/9/2017 07:22

Pre closing update - even more progress. Well done.
Suet

[philanderer] 08/9/2017 21:49

Pre close Trading Update monday morning.