AB Foods lifts FY outlook as interim profits jump

(Sharecast News) - Primark owner Associated British Foods posted a jump in interim profit and revenue on Tuesday as it lifted its full-year profit outlook. In the 24 weeks to 2 March, adjusted pre-tax profit rose 37% to £911m, on revenue of £9.7bn, up 2% at actual rates and 5% at constant currency. The company said revenue growth was driven by continued good momentum in retail and food businesses.

Adjusted operating profit was up 39% at £951m.

Looking ahead, AB Foods said it was on track to deliver "significant" growth in both profitability and cash generation ahead of expectations at the start of this financial year.

Chief executive George Weston said: "This is a very strong set of financial results, as we are now benefitting from the restoration of some normality in our markets and in our supply chains. Improvements to the group's operational performance, driven by the investments and strong execution over the last few years, are now becoming visible. Group profit margins are recovering accordingly to more normal levels.

"Looking ahead, we continue to invest with discipline to build further sustainable growth. Geopolitical risks remain, of course, and the consumer has yet to fully emerge from cost of living pressures. But the Group is well positioned to deliver good returns to shareholders."