Associated British Foods' First-Half Net Profit Rises

By Rory Gallivan

LONDON--Associated British Foods PLC (ABF.LN) Tuesday reported a rise in interim net profit as it benefited from an improvement at its sugar business and a good performance in its fashion retail sales.

The food and ingredients supplier, which also operates the fashion chain Primark, posted a net profit of 357 million pounds ($507.2 million) for the 24 weeks ended Feb. 28, up from GBP124 million the previous year, on revenue down to GBP6.12 billion from GBP6.25 billion amid currency effects.

Adjusted earnings per share were in line with the previous year at 46.1 pence, ahead of ABF's prediction in January that they would be slightly lower. The company also lifted its dividend by 3% to 10.3 pence.

"These results demonstrate underlying progress for all of our businesses in the period despite currency," said Chief Executive George Weston.

"Good buying and selling space expansion continued at Primark, cost reduction and performance improvements contributed to a better result at Sugar, profits were well ahead at Ingredients, and profit margins improved at Grocery and Agriculture," he said.

ABF said its underlying outlook for the previous year is unchanged, but it now expects only a marginal decline in adjusted earnings per share for the group for the full year. The company in January predicted a "modest" decline in adjusted earnings for the full year.

ABF supplies food ingredients including sugar and enzymes and also owns food brands such as Ryvita crisp bread and Twinings tea. Primark employs 61,000 people and has stores in the U.K., mainland Europe and the U.S.

-Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan

(END) Dow Jones Newswires

April 19, 2016 02:47 ET (06:47 GMT)

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