Business
Pre-close Trading Statement
Pre-close Trading Statement.
About this update from Associated British Foods Plc
[{"type":"text","content":"\n\n\nPre-close Trading Statement\nAssociated British Foods plc today issues the following update prior to entering the close period for its full year results for the 52 weeks to 16 September 2023, which are scheduled to be announced on 7 November 2023.\n \nReferences to sales growth in the following commentary are based on constant currency except where stated.\n \nFinancial year 2022-2023\n \n\n\n\n●\n\n\nFor the Group overall, outlook for this financial year is slightly better than previous expectations of Group adjusted operating profit to be moderately ahead of last year\n\n\n\n\n●\n\n\nFood\n\n\n\n\n\n\n\n○\n\n\nWe continue to see strong sales growth, particularly in Grocery and Ingredients and a slightly better than expected performance in Sugar\n\n\n\n\n\n\n\n○\n\n\nAdjusted operating profit now expected to be strongly ahead of the previous financial year\n\n\n\n\n●\n\n\nRetail\n\n\n\n\n\n\n\n○\n\n\nSales expected to be around £9.0bn, 15% ahead of sales last year with like-for-like sales growth of 9%\n\n\n\n\n\n\n\n○\n\n\nStrong fourth quarter sales growth, expected to be 15% with like-for-like growth of 8%\n\n\n\n\n\n\n\n○\n\n\nSales growth has been driven by selective price increases, well received ranges and strongly performing new stores\n\n\n\n\n\n\n\n○\n\n\nDigital development: rollout of enhanced website is now complete, UK trial of Click and Collect extended to womenswear\n\n\n\n\n\n\n\n○\n\n\nSecond half adjusted operating profit margin expected to be slightly below 8% and for the full financial year to be around 8%\n\n\n\n\n●\n\n\n£442m of the £500m share buyback programme completed as at the close of trading on 11 September\n\n\n\n\n\n\n\n\n\n \nOutlook for 2023-2024\n \nThe Group continues to trade well, managing inflation, recovering cash margin and continuing to drive sales in a challenging macro-economic environment.\n \nAt this stage we still expect Sugar to make a substantial improvement in profitability in the next financial year. This will be driven by a marked improvement in the performance of British Sugar, driven by an anticipated better UK sugar beet crop and a significant reduction in losses at Vivergo.\n \nAt Primark, we continue to expect a substantial recovery in gross margin as a result of lower material costs, the weakening of the US dollar against sterling ...