Associated British Foods PLC (LSE: ABF)

Associated British Foods PLC is an FTSE 100 index listed British multinational food processing and retailing entity.

On 25 April 2023, ABF has scheduled the release of H1 FY23 results.

H1 FY23 Pre-Close Period Trading Update (released on 27 February 2023)

• Trading: H1 FY23’s sales are expected to grow 20% YoY at actual exchange rates, while adjusted operating profit is expected to be broadly in line with the same period last year.
• Inflation and Spending: The Group continued to face cost pressure; notwithstanding, consumer spending turned out to be more resilient than anticipated at the start of FY23.
• Divisional Performance:
  • The food business is expected to deliver aggregate sales and aggregate adjusted operating profit to be well ahead of H1 FY23, on the back of cost mitigation and price increases.
  • Primark traded well as total sales are expected to be £4.2 billion in H1 FY23, representing 19% YoY growth.
  • Grocery is expected to be slightly lower than last year with inflation in input costs.
• Outlook: FY23 expectation for Group results has improved; and thus, FY23 adjusted operating profit and adjusted earnings per share are now expected to be broadly in line with FY22. Primark’s adjusted operating profit margin is expected to be above 8%.

Share Price Chart

(Data Source: REFINITIV, Analysis done by Kalkine Group)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Associated British Foods PLC was trading at the closing price of GBX 1,974.50 (as of 27 February 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 27 February 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 4: Dividend Yield may vary as per the stock price movement.

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