Associated British Foods plc (ASBFY)
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Associated British Foods: Attractively Priced, High Dividend And A Working Strategy
Associated British Foods' share price has fallen sharply over the past year, as investors remain primarily concerned with near-term performance. The stock is very attractively priced with an attractive and growing dividend. At the same time, Primark's expansion in the U.S. is gaining momentum and margins are at a record-high.
Associated British Foods in deal talks with Hovis owner
Associated British Foods said on Tuesday it was in talks with private equity firm Endless LLP, owner of British bakery Hovis, about a potential deal for its Allied Bakeries business.
Should Value Investors Buy Associated British Foods (ASBFY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Associated British Foods plc (ASBFY) H1 2025 Earnings Call Transcript
Associated British Foods plc (OTCPK:ASBFY) H1 2025 Earnings Conference Call April 29, 2025 4:00 AM ET Company Participants George Weston – CEO Joana Edwards - Interim Finance Director Eoin Tonge – CEO, Primark Conference Call Participants William Woods – Bernstein Richard Chamberlain - RBC Warren Ackerman - Barclays Sreedhar Mahamkali - UBS Warwick Okines - BNP Paribas Exane Grace Smalley - Morgan Stanley Ashton Olds – Redburn Atlantic Vandita S. - Citi Clive Black - Shore Capital Anubhav Malhotra - Panmure Liberum Georgina Johanan - JPMorgan George Weston My microphone apparently is live.
Primark Owner Associated British Foods Posts Revenue, Profit Below Views
The company confirmed its guidance for most of its divisions which is now expected to report an adjusted operating loss of up to 40 million pounds in fiscal year 2025.
AB Foods keeps annual guidance for Primark unit but cuts sugar outlook
Associated British Foods on Tuesday kept its guidance for "low single digit" annual sales growth at its Primark clothing unit, while the overall group reported a 10% fall in first-half profit, hurt by a loss in its sugar division.
Paul Marchant resigns as Primark boss after admitting an “error of judgment”: what’s next for the retail giant?
Paul Marchant, the chief executive of Primark, has resigned with immediate effect following an allegation about his behavior in a social setting. The announcement was made by Primark’s parent company, Associated British Foods (ABF), which stated that Marchant admitted to an “error of judgment” and accepted that his actions fell below the company’s expected standards.Marchant’s resignation follows an investigation initiated by ABF and conducted by external legal experts. While the company did not disclose the specifics of the allegation, it confirmed that Marchant had cooperated fully with the inquiry and had personally apologized to the individual involved, the ABF board, and his colleagues at Primark.George Weston, ABF’s chief executive, expressed his disappointment over the situation, emphasizing the company’s commitment to integrity and ethical behavior. “I am immensely disappointed. At ABF, we believe that high standards of integrity are essential. Acting responsibly is the only way to build and manage a business over the long term,” he said. “Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual.”ABF also stated that it would continue offering support to the individual who brought the issue to light.News of Marchant’s resignation had an immediate impact on ABF’s stock price, with shares falling 4% in early trading on Monday, making it the biggest faller on the FTSE 100 index.Analysts suggest that while the company’s fundamentals remain strong, instability at the top could create challenges in maintaining growth momentum.Leadership transition at PrimarkWith Marchant stepping down, ABF has appointed Eoin Tonge, its group finance director, as interim chief executive of Primark. Joana Edwards, currently ABF’s group financial controller, will assume the role of interim finance director.The company has not yet revealed details regarding a permanent replacement for Marchant, but the leadership change comes at a critical juncture for Primark, which has been facing both market challenges and shifting consumer trends.Marchant’s departure marks the end of a tenure that spanned more than a decade. He joined Primark as chief operating officer in 2009 and was quickly promoted to CEO later that year, succeeding founder Arthur Ryan. Under his leadership, the retailer expanded rapidly, cementing itself as one of the UK’s most dominant fashion brands.Marchant’s legacy at PrimarkDuring his 15-year tenure, Marchant played a crucial role in Primark’s evolution. Under his leadership, the company expanded its footprint across multiple international markets, growing into a powerhouse with 459 stores across 17 countries.Marchant’s strategy focused on aggressive expansion, particularly in key European markets such as France, Spain, and Germany. Despite the fast-changing retail environment, Primark remained committed to its traditional in-store model, opting against launching a full-fledged e-commerce operation.However, the retailer faced significant difficulties during the pandemic. Unlike competitors such as Marks & Spencer and Next, which had robust online sales channels, Primark struggled as lockdowns forced store closures. While the company rebounded strongly post-pandemic, recent financial results suggest growing headwinds.In January, Primark reported its first quarterly sales decline since the pandemic lockdowns, signaling that consumer spending habits were shifting. As inflation continues to squeeze household budgets, cost-conscious shoppers—who make up a significant portion of Primark’s customer base—have been cutting back on discretionary spending.The company has also faced challenges due to unseasonably warm weather affecting demand for seasonal clothing. Compared with rivals that offer a more diversified product range, Primark’s reliance on affordable fashion makes it particularly vulnerable to changes in consumer behavior.Challenges before Primark’s new leadershipWith the departure of a long-serving CEO, Primark now faces a period of transition. Industry analysts believe that whoever takes over the top role will need to navigate a shifting retail landscape while maintaining Primark’s core value proposition of offering low-cost fashion.One major area of focus will be Primark’s digital strategy. While the company has resisted fully integrating online sales, it has recently experimented with a click-and-collect model in select stores.Expanding its digital footprint while preserving its in-store-driven approach could be a key challenge for the next leadership team.Another concern is maintaining its competitive edge amid rising operational costs and changing consumer preferences. The company recently announced plans to invest £100 million in UK store refurbishments and new openings, signaling its commitment to physical retail. However, sustaining growth in a highly competitive market will require strategic adjustments.Despite the current turmoil, Primark remains one of Britain’s most profitable retailers. Last year, the company generated £9.45 billion in revenue, with a profit of £1.108 billion. Its partnership with high-profile figures such as pop star Rita Ora has helped maintain its brand appeal, while ongoing expansion efforts continue to strengthen its presence in international markets.The post Paul Marchant resigns as Primark boss after admitting an “error of judgment”: what’s next for the retail giant? appeared first on Invezz
Associated British Foods: A Tremendous Value Play If You Have Faith In Primark
Primark's international store expansion strategy offers quite a decent level of medium-term growth potential, offsetting the weak UK retail outlook amidst challenging consumer confidence. ABF's diversified business model across Retail, Grocery, Ingredients, Sugar, and Agriculture provides resilience, with a strategic focus on cost management and debt reduction boosting shareholder returns. Attractive valuation metrics and an anticipation for further special dividends make ABF a potentially intriguing investment opportunity for long-term value investors.
Associated British Foods: Business Showing Its Profit Potential Again (Rating Upgrade)
Associated British Foods' shares have fallen 30% since May, yet business performance, especially profit margins and cash flow, has improved significantly, nearing pre-pandemic levels. The company's strong financial discipline, including a ÂŁ565m buyback and a special dividend, signals management's confidence in its financial robustness. Despite underwhelming early 2025 performance, ABF is well-positioned for medium-term growth, with expected sales growth in retail and ingredients, but the sugar division faces challenges.
AB Foods sees analysts' profit view falling 2% after Primark sales downgrade
Associated British Foods expects analysts' consensus profit expectations for its 2024/25 year to fall about 2% after the group cut the sales outlook for its Primark clothing business, its finance chief said on Thursday.
AB Foods cuts Primark guidance after UK sales shrinkage
Primark owner Associated British Foods PLC essentially issued a profit warning on Thursday, lowering the full-year outlook for its clothing retail chain. For the year to September 2025, Primark is now expected to grow sales by low-single digits, down from the "mid-single digit" guidance issued at the FTSE 100 group's final results in November.
Associated British Foods: Dividend Growth Opportunity Flying Under The Radar
After a stellar 2023, Associated British Foods shareholders are likely facing a disappointing close in 2024. In the meantime, however, business fundamentals are improving, and the stock once again trades at a significant discount. On top of all that, the already attractive dividend is poised to continue growing in the coming years.
