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Nov 7 2023, 09:05 GMT
Associated British Foods
FY24 outlook positive; further £500m share buyback announced
- Sectors : Foods
- Companies : Associated British Foods
DAVY VIEW
Associated British Foods’ (ABF) FY23 adjusted operating profit came in modestly ahead of our expectations, supported by greater than anticipated margin delivery at Primark and strong profit delivery across most Food divisions. Following the conclusion of its previous programme, management has announced a further £500m buyback. Primark margins are anticipated to be above 10%, driven by ‘substantial’ recovery in gross margins as material costs and freight retreat – further improvement will be dependent on consumer demand. We envisage modest upside to our current forecasts.
