AB Foods: announces H2-2019 Interim Results

London / UK. (abf) Food, ingredients and retail group Associated British Foods PLC (ABF) announces the following interim results for the 24 weeks to 02 March 2019 – according to Chief Executive George Weston a robust set of results.

Financial Headlines

				Actual		Constant currency
Group revenue	GBP	7,532	million	+1	percent	+2	percent
Adjusted operating profit	GBP	639	million	-1	percent	-2	percent
Adjusted profit before tax	GBP	627	million	In line
Adjusted earnings per share		61.10	pence	In line
Dividend per share		12.05	pence	+3	percent
Gross investment	GBP	433	million
Net Cash	GBP	386	million
Statutory operating profit down 14 percent to GBP 534 million, statutory profit before tax down 15 percent to GBP 515 million, and a reduction in basic earnings per share of 19 percent to 49.2 pence mainly as a result of an exceptional charge of GBP 79 million included in this year’s income statement.

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George Weston, Chief Executive of Associated British Foods, said: «This is a robust set of results. Profit at AB Sugar was substantially reduced but, from this period, we expect our sugar profitability to improve. The strong underlying growth in Grocery profits demonstrates good momentum. Primark delivered excellent profit growth, driven by further development of our customer experience and selling space expansion.»

Adjusted operating profit is stated before the amortisation of non-operating intangibles, profits less losses on disposal of non-current assets, transaction costs, amortisation of acquired inventory fair value adjustments and exceptional items. These items, together with profits less losses on the sale and closure of businesses, are excluded from adjusted profit before tax and adjusted earnings per share. References to operating profit in the Operating Review are based on this adjusted operating profit measure.

Constant currency figures are derived by translating the 2018 results at 2019 average exchange rates, except for countries where consumer price inflation has escalated to extreme levels, in which case actual exchange rates are used, applied to local currency data before the application of IAS 29.

Underlying profit for Grocery excludes a GBP 12 million charge in 2019 in respect of the closure of the Twinings tea factory in Jinqiao, China. For further information please read AB Food’s pdf file below:

20190426-ABF-H2-2019.