Business
Pre Close Period Trading Update
Pre Close Period Trading Update.
About this update from Associated British Foods Plc
[{"type":"text","content":"\n \n \n \n \n \n 27 FEBRUARY 2023\n \n \n Pre-Close Period Trading Update\n \n \n Trading summary for the half year\n For the half year, we expect total sales for the Group to be more than 20% ahead of last year at actual exchange rates and more than 16% ahead at constant currency. Adjusted operating profit at the half year is expected to be broadly in line with the same period last year.\n As outlined in our trading statement of 24 January, we continued to encounter significant cost pressures. Consumer spending has proven to be more resilient in this trading period than anticipated at the start of the financial year.\n Our Food businesses continue to seek to recover inflation through cost mitigation and price increases. For the half year, we expect both aggregate sales and aggregate adjusted operating profit to be well ahead of the same period last year, albeit at a lower margin. Due to better trading, we now expect adjusted operating profit at Ingredients to be significantly ahead of the same period last year. Adjusted operating profit at Grocery is expected to be slightly lower than last year with inflation in input costs continuing to run ahead of pricing and cost mitigation activity.\n Primark traded very well for the half year, total sales are expected to be £4.2bn, 19% ahead of the same period last year at actual exchange rates and 16% ahead at constant currency. Adjusted operating profit margin for the half year is now expected to be above 8%.\n \n Full year outlook\n For the full year, our expectation for the Group result has improved. Adjusted operating profit and adjusted earnings per share are now expected to be broadly in line with the previous financial year.\n In the second half the recovery of significant inflation in our input costs remains a management priority but inflation has become less volatile and recently some commodity costs have declined. Macro-economic headwinds for the consumer remain and may weigh on spending in the months ahead. At Primark, we remain cautious about the resilience of consumer discretionary spending in the face of continuing inflation in the cost of living and higher interest rates.\n For the full year adjusted operating profit in our Food businesses is expected to be modestly ahead of last year. After the very strong performance in the first half, we now expect Ingredie...