AB Foods Forecasts Fiscal Year 2020 Earnings Rise But Primark Margins to Suffer
06 Dezembro 2019 - 5:00AM
Dow Jones News
By Adriano Marchese
Associated British Foods PLC (ABF.LN) said Friday that it
expects improved earnings per share in fiscal 2020 but full-year
margins at its Primark business to be below the prior year.
The U.K. retailer said its sugar business will benefit
materially from the increase in European Union sugar prices and
from further cost reductions. It anticipates its grocery business
will have another year of strong profit and margin growth, with its
Twinings Ovaltine range in particular benefiting from a more
efficient tea supply chain.
The company's low-cost fashion chain Primark has a strong
pipeline of good quality sites, it said, and that it will continue
to expand its selling space in the year, with more stores being
added in France and Spain. However, margin on a lease-adjusted
basis will be below last year's with the effects of weaker sterling
largely offset by cost reductions of goods plus overheads.
The company said it still expect progress in adjusted earnings
per share for the group on both a reported and an IFRS 16 adjusted
basis--a metric which excludes exceptional costs.
AB Foods said that it has completed all practical preparations
for Brexit, and contingency plans are in place in case of
disruptions.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 06, 2019 02:45 ET (07:45 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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