Share your thoughts on our News & Insights section. Complete our survey to help us improve.

Share research

Associated British Foods: margin recovery drives profit growth

Associated British Foods delivered a strong set of full-year results as profits at Primark soared higher.
Associated British Foods - positive Christmas trading

No recommendation - No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Prices delayed by at least 15 minutes

Associated British Foods (ABF) has reported full-year revenue of £20.1bn, up 4% when ignoring currency impacts. All main business segments except Agriculture delivered growth, with Retail sales from Primark up 6%.

Underlying operating profit rose 38% to £2.0bn, reflecting the top line growth and a significant recovery in margins, which helped boost Primark’s profits by 51%.

Free cash flow rose from £0.3bn to £1.4bn and net debt, including leases, was £2.2bn.

ABF is targeting mid-single-digit sales growth from Primark next year. As previously announced, the Sugar division is expected to be significantly impacted by increased supply which has led to a sharp fall in European sugar prices.

Total dividends were up 50% to 90p; consisting of a 20.7p interim dividend, final dividend of 42.3p, and a special dividend of 27.0p. A new £500mn buyback was also announced, to be completed over the next 12 months.

The shares rose 4.2% in early trading.

Our view

HL view to follow.

Associated British Foods key facts

All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
Latest from Share research
Weekly Newsletter
Sign up for Share Insight. Get our Share research team’s key takeaways from the week’s news and articles direct to your inbox every Friday.
Written by
Aarin Chiekrie
Aarin Chiekrie
Equity Analyst

Aarin is a member of the Equity Research team. Alongside our other analysts, he provides regular research and analysis on individual companies and wider sectors. Having a keen interest in global economics, he knows how macro-events can impact individual companies.

Our content review process
The aim of Hargreaves Lansdown's financial content review process is to ensure accuracy, clarity, and comprehensiveness of all published materials
Article history
Published: 5th November 2024