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.
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Associated British Foods key facts
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