2022 Interim Results Announcement

26/04/2022 00:00:00
Financial

Associated British Foods plc results for the 24 weeks ended 5 March 2022

Group sales and profit return to pre-COVID levels

Financial Headlines

 

Actual

Constant currency

Group revenue

£7,882m

+25%

+28%

Adjusted operating profit

£706m

+91%

+92%

Adusted profit before tax

£666m

+109%

 

Adjusted earnings per share

63.8p

+154%

 

Dividend per share

13.8p

+123%

 

Gross investment

£450m

   

Net cash before lease liabilities

£1,476m

 

 

Net debt including lease liabilities

£1,665m

 

 

Statutory operating profit

£686m

+114%

 

Statutory profit before tax

£635m

+131%

 

Basic earnings per share

60.3p

+194%

 

Statutory operating profit is stated after exceptional charges and other items shown on the face of the condensed consolidated income statement. There was a £25m exceptional charge in the prior half year.

Food: resilient operational performance

  • Sales up 6% to £4,342m; adjusted operating profit down 9% to £330m
  • Cost reduction and pricing action taken but lag in recovery of cost inflation
  • High input cost inflation, logistics challenges, COVID-related labour absences
  • Sugar sales and profit well ahead

Primark: strong recovery in sales and margin

  • Sales up 59% to £3,540m; adjusted operating profit margin 11.7%
  • UK/Ireland: strong sales recovery with increased holiday travel and socialising
  • Continental Europe: consumer footfall remained weak
  • US: trading well
  • Transforming digital capability; launch of new website

Dividend

  • Interim dividend of 13.8p per share (2021: 6.2p)

George Weston, Chief Executive of Associated British Foods, said:

“This half year sales and operating profit for the Group returned to pre-COVID levels. Our people have responded well to the many challenges we faced.

Our food businesses have once again proved their operational resilience and Sugar had another strong period, building on its recent track record of recovery. Measures to mitigate higher costs in all our businesses have been taken and more are planned. Primark delivered a significant increase in sales and profit, with stores now open and trading largely free of restrictions.

Looking further ahead, inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock. However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty.

Notwithstanding the inflationary pressures we are experiencing, our outlook for the year is for significant progress in adjusted operating profit and adjusted earnings per share for the Group.”

The Group has defined and outlined the purpose of its Alternative performance measures in note 13. These measures are used within the Financial Headlines and in this Interim Results Announcement.

For further information please contact:

Associated British Foods:
Tel: 020 7399 6545

John Bason, Finance Director
Chris Barrie, Corporate Affairs Director

Citigate Dewe Rogerson:
Tel: 020 7638 9571

Jos Bieneman Tel: 07834 336650

2022 Interim Results Announcement