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Highlights
- Shares of food processing and retail firm Associated British Foods surged by 6 per cent after posting strong year-end results and on expansion plans for its retail business Primark.
- ABF’s statutory profit before tax rose by 6 per cent to £725 million from the previous year, and its food business adjusted operating profit increased by 10 per cent on a year-on-year basis to £760 million.
- Primark accelerated its expansion plans with a target of opening over 100 shops over the next 5 years.
British multinational food processing and retail firm Associated British Foods’ (LON:ABF) shares surged on Tuesday after it reported strong results and, on its plan, to open 100 new stores of the retail brand Primark.
Associated British Foods (LON: ABF) share price performance
Associated British Foods’ shares were trading at GBX 1,968.50, up by 5.92 per cent on 9 November at 11:17 AM BST. Meanwhile, the FTSE 100 index, which it is a part of, was at 7,309.50, up by 0.13 per cent.
Comparatively, the food products sectoral index was at 6,627.81, up by 3.36 per cent.
(Image source: EODHD/Others)
ABF became the highest riser on the FTSE 100 index today following the release of the result.
The group’s market cap stands at £14,713.26 million as of Tuesday. Associated British Foods has netted shareholders a return of 17.70 per cent in the last one year as of 9 November.
AB Food’s results for 53 weeks ended on 18 September
The group’s revenue stood at £13,884 million, flat compared to 2020, on an actual basis and was up by 1 per cent on a constant currency basis.
AB Food’s statutory operating profit at £808 million this year for the 53-week period ending on 18 September was mostly in line with £810 million from the year before. And the group’s statutory profit before tax rose by 6 per cent to £725 million in this year.
The group’s total declared and proposed dividend for the year stood at 34.3 pence per share. It has declared a special dividend of 13.8 pence per share as a second interim dividend and a final dividend of 20.5 pence per share.
The payment date for the final dividend and special dividend is set for next year, on 14 January.
ABF’s food and retail business posts strong performance
The group’s food business posted strong results, as its adjusted operating profit increased by 10 per cent on a year-on-year basis to £760 million, and its combined revenue rose by 5 per cent on a yearly basis.
Meanwhile, the group’s retail business Primark showed its adjusted operating profit increased by 15 per cent to £415 million from the previous year.
Primark’s like-for-like sales were down by 12 per cent from its pre-pandemic levels.
The fast-fashion retail brand aims to open over 100 new stores over the next five years across the US, France, Italy and other countries. The target comes as the brand hopes to benefit from a strong economic rebound after the pandemic induced slump.
The accelerated expansion plan would bring Primark’s total number of global stores up from its current 398 stores to about 530 stores.
