Associated British Foods Q3 Revenues Up 47% At Constant Currency

Associated British Foods plc. (ASBFY.PK,ABF.L) reported that its third-quarter revenues were 3.65 billion pounds, up 47% from last year at constant currency.

Grocery revenues in the third quarter were lower than last year, with a decline of 3% at constant currency. Third quarter sales last year were very strongly ahead of the prior year, with an increase of 9%, with much higher retail channel volumes as a consequence of the first lockdowns across major markets.

AB Sugar had a strong third quarter with revenues 21% up on last year bringing the cumulative increase in this financial year to 7%.

Ingredient revenue in the third quarter was 3% ahead of last year, driven by both AB Mauri and ABF Ingredients.

AB Agri sales in the third quarter were 10% ahead of last year.

All revenues results are presented at constant currency basis.

For the full year, the company now expects that the improved performance at Illovo will result in a higher adjusted operating profit at AB Sugar. Adjusted operating profit at Grocery is expected to be lower than last financial year primarily driven by lower margins at ACH.

The company noted that its forecast for full year sales at Primark has increased and adjusted operating profit, stated before repayment of job retention scheme monies, is now expected to be broadly in line with last year.

The company noted that its outlook for the adjusted operating profit for the group, stated before repayment of job retention monies is now in line with last year.

The company expects improvements in our outlook to result in adjusted earnings per share for the group reaching a level below last year, only reflecting the charge for repayment of the job retention scheme monies and the higher year-on-year adjusted effective tax rate.

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