FX.co ★ Associated British Foods H1 Profit Climbs; On Track For Significant FY24 Profit Growth Ahead Of View

The Associated British Foods PLC has reported a remarkable growth in its first-half profits before taxation, with a 37% increase to £881 million compared to the £644 million recorded in the same period last year.

There was also a 30% surge in basic earnings per share reaching 87.4 pence, up from 67.0 pence last year. The adjusted profit before tax also saw a significant boost, standing at £911 million compared to £667 million from the previous year. Similarly, the adjusted earnings per share rose to 90.4 pence, up from 62.0 pence in the prior year.

There was a promising 2% growth in the group revenue, reaching £9.73 billion up from £9.56 billion last year. When analyzed on a constant currency basis, the revenue growth stood at 5%.

The directors have declared an interim dividend of 20.7 pence for each share. This is a 46% increase in comparison to the same period last year, reflecting the robust growth in earnings. The dividend will be disbursed on July 5 to shareholders who are registered by close of business on May 31.

Looking into the future, the company is confident to stay on course to achieve substantial growth in both profitability and cash generation. This forecast exceeds the expectations set at the start of this financial year.

The company anticipates that their grocery sector will continue to perform well, and there are positive expectations for a significant improvement in profitability in their Sugar sector. The company also predicts a strong second half of the year for Primark, driven by their store expansion program and the modest levels of same-store sales growth.