Associated British Foods Share Discussion Threads

[tlobs2] 10/9/2018 15:30

Good afternoon all.

It does make me smile when I read about Primark needing to have an on-line presence. With three daughters (two with children) Primark is one of their stores of choice.

They go in looking for a particular item that they need and normally come out with bag fulls of other items!

That would never happen on-line and as has been mentioned previously if it did then the bulk of items might be returned.

[warranty] 10/9/2018 14:13

The sugar business will always be variable, always has been but it will recover again along with profits. These so called experts who want to split the business up should go and do one. Perfect opportunity for long term holders to take advantage of market swings and add to their position in a superbly run business.

[essentialinvestor] 10/9/2018 14:03

We bounced from about last week's low.

[philanderer] 10/9/2018 13:39

“Investors may be getting worried about the ongoing ability of Associated British Foods’ Primark business to get the rest of the company out of trouble,” said AJ Bell’s Charlie Musson.

“It may be asking too much for this part of the business to always come to the rescue, given the pressures on traditional retail.”

Primark added 15 new stores during the year taking its total stores estate to 360.

It will continue to add more space in Germany, France, Spain and Britain.

[queen gibbs] 10/9/2018 12:54

Lots of noise about today as you'd imagine - an article I just picked up


Major shareholder unmoved

The big issue in this particular case is that almost 60% of ABF’s shares are held by chief executive George Weston and his family.

That means the Westons need to be on board with any proposed changes and, so far at least, they have shown little interest in breaking the status quo.

If the family opts to maintain things as they are, Beauchamp is convinced that Primark, along with ABF shareholders, will continue to be held back by the ailing sugar business.

“The problem for Associated British Foods is that it is a perfectly good clothing retailer for the mass market but until either the sugar market turns around or ABF bites the bullet and gets rid of it the shares will be serial underperformers.R21;

ABF shares dropped more than 4% at the opening bell on Monday, although they have recovered some of those losses as the day has worn on and are down 1% to 2,249p in early afternoon trading.

[philanderer] 10/9/2018 10:23

'Primark owner AB Foods warns volatile pound will hit sales by £20m'

AB Foods says Primark will be "sensitive to sterling exchange rate volatility" as Britain negotiates its exit from the EU.

[essentialinvestor] 10/9/2018 09:57

It's a better share price reaction than I feared on seeing the l4l Primark drop,
market giving the benefit of doubt as a result of the heatwave,
maintenance of guidance a positive.

[whalehq] 10/9/2018 09:57

WSKILL: I'd just like to find out where your fwd PE of 13 comes from. I seem to be getting a much higher PE in my workings perhaps there is something I've missed?

[warranty] 10/9/2018 09:50

The last thing Primark want to do is go on line. It's the reason most of the retailers are struggling, being encouraged into it to be all "modern" especially the supermarkets who lose a fortune on home delivery. It's just a giant con being there for fat, idle, younger customers who can't be bothered to get off their backsides and go to the store. Look at successful retailers like Aldi, Lidl and our own Primark where the shops are bursting. Please don't let Primark get drawn into the malaise or we really will see sales eroded as Queen Gibbs says. Visit store buy six items, go on line order six items send five back. How can that be as profitable? Stay off line Primark.

[philanderer] 10/9/2018 09:15

ShoreCap reiterating 'buy'

[wskill] 10/9/2018 08:41

Looks ok to with a forward PE of 13 its a quality business ok the directors cannot indulge in get rich schemes that infest the other FTSE 100 club.

Might not be a bad thing that the Westons stop them filling their pockets with shareholders cash and keep their noses out of the trough.

[philanderer] 10/9/2018 08:37

Toulouse to open at long last :-)

[queen gibbs] 10/9/2018 08:30

Interesting early reaction to the news reflected in share price?

[mbmiah] 10/9/2018 08:20

Yeah, great results. It's down 3%

[wskill] 10/9/2018 07:17

Excellent update today what is not to like pleased to have picked up a few more last week will add again today.

[philanderer] 07/9/2018 18:16

Pre-close trading update due out monday @ 7am

[nilsholgerson] 07/9/2018 15:27

I agree QG, this most probably is a positive sign than negative. Based on your experience, what would you do if you were Primark to take the company to the next level? Apart from going online, which is debatable whether is the panacea to all risks. For me, the demise of other retailers could be seen as an opportunity. For example, in the absence of other big buyers, Primark could go to suppliers and demand to pay them also in Eur and GBP to reduce margin risk due to FX.

[queen gibbs] 07/9/2018 14:57

An interesting piece Phil - looks like they all went to JDW to drown their sorrows!
August has probably been made worse this year as due to the great weather in the Summer high seasons (fashion) stock will have sold out early meaning whilst the weather remains fairly warm the only products available in depth will be winter lines - knitwear & coats etc which people will think about buying between the kids going back to school & Octobers 1/2 term
Positive from this is will be they will have sold a lot of summer stock at full price rather than on reduction = better margin

[philanderer] 07/9/2018 13:43

Market report:

Primark owner Associated British Foods was under the cosh after accountancy and business advisory firm BDO's monthly High Street Sales Tracker showed that like-for-like sales declined 2.7% in August compared to a year earlier, marking the worst August drop for three years.

[essentialinvestor] 07/9/2018 12:39

Gibbs, thanks.
In fairness as the UKX is being hit hard, ABF(helped by FX) looks less
ugly than many others. 17x looks reasonable, unless Primark growth expectations
are cut. 17x may look very cheap longer term. See what they say on the update.

[queen gibbs] 07/9/2018 12:34

EI - I have spent several years working on 'the High Street' in both the UK & Europe for some of the largest retailers, in that time I have made several senior contacts who I keep in touch with

Another poor day on the share price?

tlobs2 - great comment similar to what you leave for others (having read your profile) at any time please tell me when I'm factually incorrect

Rumour has it another Executive Director left this week - didn't last a year!
All is not well in the happy ship Primark

[nilsholgerson] 07/9/2018 07:30

I think Vivergo has been fully written off in the books so this will increase profits by GBP30m that the plant was losing per year lately. Nevertheless a sad story and definitely a totally unsuccessful investment.

[philanderer] 06/9/2018 23:53

'Bioethanol plant to close citing ‘lack of pace’ for change'


........The Hull plant was a joint venture between AB Sugar, BP and DuPont. It is now owned by Associated British Foods, AB Sugar’s parent, which also cited the low bioethanol price and high wheat prices as contributors to difficult trading conditions.