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.
Associated British Foods plc (OTCPK:ASBFY) Q4 2024 Earnings Call Transcript November 5, 2024 4:00 AM ET Company Participants George Weston - CEO Eoin Tonge - CFO Conference Call Participants William Woods - Bernstein Warwick Okines - BNP Paribas Exane Clive Black - Shore Capital Richard Chamberlain - RBC Gary Martin - Davy Sreedhar Mahamkali - UBS Ashton Oaks - Redburn Warren Ackerman - Barclays Georgina Johanan - JPMorgan Adam Cochrane - Deutsche Bank George Weston Thank you all, then, very much for coming to this review of ABF full year results for the 52 weeks ended 14th of September 2024. And I'm aware that there are some people online, and welcome to you too.
Budget clothing retailer Primark is expecting to trade well in the run-up to Christmas, the boss of its parent said on Tuesday.
Associated British Foods reported a 32% rise in full-year profit, with a robust performance from its grocery division and a solid outcome from its Primark clothing business partially offset by accelerating weakness in its sugar operations.
The London headquartered company, which owns is a major supplier of sugar to the European food and drinks industry, said a market glut will continue to hit profits from its sugar business.
Wet weather in Britain hit fashion business Primark's summer sales, but better performance elsewhere kept operating profits steady, owner Associated British Foods said on Thursday.
Primark's like-for-like sales went into reverse in the second half of its financial year, today's update from parent company Associated British Foods PLC revealed, with sugar profits also lower than expected but a £100 million share buyback to help sugar the pill. LFL sales fell 0.5% in the half year to 14 September, while total revenues were up 4% thanks to new store openings.
After a strong 2023, Associated British Foods' share price is again lagging. In the meantime, however, business fundamentals continue to improve and margins are near record highs. Primark growth is accelerating, while the outlook for the Grocery and Sugar divisions is also on a strong footing.
Here is how Associated British Foods PLC (ASBFY) and Edgewell Personal Care (EPC) have performed compared to their sector so far this year.
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Associated British Foods is a diversified conglomerate and operates in multiple sectors, ensuring a stable revenue stream and reducing dependency on any single market. Recent earnings show strong profit growth, particularly in the grocery and sugar divisions, with a positive outlook for the future. The company's solid balance sheet, share buyback program, and discounted valuation make it a compelling investment opportunity with a buy rating.
Here is how Associated British Foods PLC (ASBFY) and Chewy (CHWY) have performed compared to their sector so far this year.