AB Foods: Publishes H1-2022 Interim Results Announcement

London / UK. (abf) Food, ingredients and retail group Associated British Foods PLC (ABF) issues the following Interim Results Announcement for the 24 weeks ended 05 March 2022. Group sales and profit return to pre-Covid levels, the Group said in its statement.

Financial Headlines
Actual
Constant currency
Group revenue GBP 7,882 million +25% +28%
Adjusted operating profit GBP 706 million +91% +92%
Adusted profit before tax GBP 666 million +109%
Adjusted earnings per share GBP 63.8 pence +154%
Dividend per share GBP 13.8 pence +123%
Gross investment GBP 450 million
Net cash before lease liabilities GBP 1,476 million
Net debt including lease liabilities GBP 1,665 million
Statutory operating profit GBP 686 million +114%
Statutory profit before tax GBP 635 million +131%
Basic earnings per share GBP 60.3 pence +194%

Statutory operating profit is stated after exceptional charges and other items shown on the face of the condensed consolidated income statement. There was a GBP 25m exceptional charge in the prior half year.

Food: resilient operational performance

  • Sales up 6 percent to GBP 4,342m; adjusted operating profit down 9 percent to GBP 330m
  • Cost reduction and pricing action taken but lag in recovery of cost inflation
  • High input cost inflation, logistics challenges, Covid-related labour absences
  • Sugar sales and profit well ahead

Primark: strong recovery in sales and margin

  • Sales up 59 percent to GBP 3,540m; adjusted operating profit margin 11.7 percent
  • UK/Ireland: strong sales recovery with increased holiday travel and socialising
  • Continental Europe: consumer footfall remained weak
  • US: trading well
  • Transforming digital capability; launch of new website

Dividend

  • Interim dividend of 13.8p per share (2021: 6.2p)

Chief Executive’s statement

Chief Executive George Weston: «This half year sales and operating profit for the Group returned to pre-Covid levels. Our people have responded well to the many challenges we faced.

«Our food businesses have once again proved their operational resilience and Sugar had another strong period, building on its recent track record of recovery. Measures to mitigate higher costs in all our businesses have been taken and more are planned. Primark delivered a significant increase in sales and profit, with stores now open and trading largely free of restrictions.

«Looking further ahead, inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock. However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty.

«Notwithstanding the inflationary pressures we are experiencing, our outlook for the year is for significant progress in adjusted operating profit and adjusted earnings per share for the Group.»

For additional information please read the Company’s PDF file below (453 KB):

20220426-ABFOODS-H1-2022
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