ASBFY Associated British Foods Plc (PK)

By Sabela Ojea

Associated British Foods PLC said Monday that revenue and adjusted operating profit for the first half of fiscal 2022 are expected to be significantly higher than a year earlier.

The British conglomerate also said sales and adjusted operating profit for the 24 weeks ending March 5 are anticipated to be above the pre-pandemic levels of the first half ended Feb. 29, 2020.

The FTSE 100 listed company, which also expects a rise in adjusted operating profit for the second half, said its outlook for the full year remains unchanged, marked by significant progress in adjusted operating profit and adjusted earnings per share.

Regarding sales at clothes retailer Primark--which doesn't sell goods online--first-half revenue is expected to be more than 60% above the previous year, with its adjusted operating profit margin expected to be about 11%, AB Foods said.

Sales in the U.K. and continental Europe continued to be above the previous year, it said, noting that its U.S. business continues to outperform the rest of its store estate and is on track to deliver 2% like-for-like sales growth in the period.

"The effect of inflation on raw materials and the supply chain in Primark...has been broadly mitigated by a reduction in store operating costs and overheads and a favorable U.S. dollar exchange rate," it said, noting that like-for-like sales improved compared to the final quarter of its fiscal 2021 year.

In relation to its other businesses, AB Foods said first-half grocery revenue is expected to be 2% above the previous year, and that sugar revenue is anticipated to be more than 20% above a year earlier.

Revenue for its ingredients business is anticipated to be 10% ahead of last year on a volume recovery and cost efficiencies amid inflation, it added.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 28, 2022 03:21 ET (08:21 GMT)

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