Associated British Foods PLC

ABF

Equity

ISIN GB0006731235 / Valor 719064

LSE London Stock Exchange, SETS (2024-11-21)

GBP 21.71+0.70%

Associated British Foods PLC
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About company

Associated British Foods PLC (ABF) is a diversified international food, ingredients, and retail group with a wide range of operations across the globe. Its business segments include agriculture, retail, sugar production, and grocery brands. AB Agri, a subsidiary of ABF, operates internationally, providing a comprehensive range of farm performance services, animal feed, specialty ingredients, and supplements, catering to the needs of farms, feed manufacturers, food producers, and retailers. Primark, another significant part of ABF's portfolio, stands as one of Europe's largest clothing retailers, boasting the highest sales volume in the UK and expanding its footprint in the US, with a total of 432 stores in 16 countries across Europe and the US. In the sugar sector, ABF Sugar is involved in producing a variety of products from sugar cane, sugar beet, and wheat, with operations in Africa, the UK, Spain, and China. The grocery segment of ABF encompasses a range of brands that hold leading positions in global markets, with a notable presence in UK households where nine out of ten use its brands. This diversified business model allows ABF to leverage cross-sector synergies and maintain a strong presence in its respective markets.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Revenue Growth

Associated British Foods PLC reported a group revenue of £9,734 million for the 24 weeks ended 2 March 2024, reflecting a 2% increase from the previous year's £9,560 million. This growth was driven by continued good momentum in both their retail and food businesses.

Profit Increase

The company saw a significant growth in adjusted operating profit, which rose by 46% to £951 million compared to £684 million in the same period last year. This increase is attributed to strong margin recovery across their business segments.

Dividend Growth

Associated British Foods PLC announced a significant increase in their interim dividend to 20.7p, up from 14.2p in the previous year. This reflects the growth in earnings and the company's commitment to delivering good returns to shareholders.

Free Cash Flow

The company generated a free cash flow of £468 million for the 24 weeks ended 2 March 2024, which is a substantial improvement from the previous year's £(510) million. This was driven by profit growth and a significant reduction in working capital outflow.

Outlook

Looking ahead, Associated British Foods PLC expects to deliver significant growth in both profitability and cash generation for the full year. The company anticipates continued strong performance in their Grocery, Sugar, Ingredients, and Agriculture segments, as well as ongoing growth in their retail business, Primark.

Summarized from source with an LLMView Source

Key figures

-8.01%1Y

14.0%3Y

-11.4%5Y

Performance

22.4%1Y

25.4%3Y

30.9%5Y

Volatility