Here is a summary of the trading update from Associated British Foods PLC for the second half of the financial year ending September 14, 2024
The Group has performed wellwith good topline growthimproved profitabilityand strong cash generation.
Primark revenue growth is expected to be around 4% in H2, driven by store expansions, while like-for-like sales are expected to decrease by 0.5%.
The UK sales are expected to be 0.5% lower, with a like-for-like decline of 2.0%, attributed to unfavorable weather and lower high street footfall.
Europe (excluding the UK) and the US have performed well, with sales growth expected to be around 5% and 25% respectively in H2.
Grocery sales are expected to grow by 3% in H2, driven by strong international and regionally-focused brands.
Ingredients sales have continued to grow, with strong performance from AB Mauri and speciality ingredients businesses.
Sugar profitability is lower than anticipated due to a sharp fall in European sugar prices, resulting in an adjusted operating profit of approximately £200 million.
Agriculture sales are expected to decrease slightly in H2 due to soft demand for compound feed.
The Group expects further strategic progress in FY25, with good sales growth in Primark and continued momentum in most food businesses.
The share buyback program has been extended by an additional £100 million, reflecting strong cash generation.
Full-year preliminary results are scheduled to be announced on November 5, 2024.