AB Foods Profit up, Strong Performance from Discount Chain Primark

LONDON--Associated British Foods PLC (ABF.LN), the food, ingredients and retail group, Tuesday reported a rise in full-year profit, helped by what the company called an outstanding year for discount clothing chain Primark.

Pre-tax profit for the 52 weeks ended Sept. 14 rose to 876 million pounds ($1.40 billion) compared with GBP761 million last year, on revenue up 9% at GBP13.3 billion. The company declared a total dividend of 32.0 pence, an increase of 12%.

Associated British Foods said Primark's revenue was 22% ahead of last year after the chain added a further 800,000 square feet, or 10%, to its already substantial estate. Grocery margins improved, with a recovery in both the baking and meat businesses of George Weston Foods in Australia. AB Sugar's profit declined, in line with expectations, due in part to lower European production and the company said it expects a further reduction in profit from AB Sugar next year.

Primark's continued expansion together with revenue growth and margin improvement in grocery are expected to deliver further increases in profit in those businesses in the current year, the company said.

Shares closed Monday at 2,255.0 pence, valuing the company at GBP17.9 billion.

Write to Jana Weigand at [e-mail]

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