Associated British Foods

Adjusting forecasts – strength of Primark model intact

  • Sectors : Foods
  • Companies : Associated British Foods

Ratings and price correct at time of issue.

  • Associated British Foods

    Closing Price: 2249p

  • RATING 05/07/11

  • PREVIOUS RATING 03/11/10



Widespread store closures across the Primark estate and the likelihood of restriction extensions have prompted us to lower our FY 2021 EBIT estimates – we model for restrictions lasting through March-end. Our assumptions for FY22 EBIT and EPS remain broadly unchanged. Despite the extended dislocation across the retail landscape, ABF remains a quality operator with significant franchise value in Primark. The COVID crisis playbook is now in place – exemplary inventory and cash management is a key attribute of the ABF/Primark model. Its diversified structure will continue to serve it well through FY 2021. The recently announced ESG investor series, ABF’s first, is an important development for all stakeholders.

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Jan 18 2021, 11:05 GMT