AB Foods FY profits jump, special dividend declared

5th Nov 2024 07:53

(Sharecast News) - Primark owner Associated British Foods posted a 33% jump in full-year adjusted pre-tax profit on Tuesday, with revenue growth in both the retail and food businesses, as it announced a special dividend.

In the 52 weeks to 14 September, adjusted pre-tax profit rose to £1.96n from £1.47bn a year earlier, with group revenue up 2% at £20bn.

Adjusted operating profit was 32% higher at just under £2bn and the company lifted its total dividend by 50% to 90p per share. It also announced a special dividend of 27p a share and a further share buyback programme of £500m, to be completed before the end of the financial year 2025.

Retail revenue grew 6% during the year to £9.4bn, reflecting a strong performance across its key growth markets, including the US, France, Spain, Italy and Central and Eastern Europe, as well as growth in its largest market, the UK.

Chief executive George Weston said: "This was a year of very strong financial and operational progress across the group. We delivered a substantial improvement in profitability, excellent cash generation and strong returns as a result of consistent, multi-year investment and a return to some normality in our markets and supply chains. Above all, these results reflect the excellent work and disciplined focus of our people.

"Primark achieved good sales growth this year and I am particularly pleased with the significant recovery in margin. Our low-cost model is as strong as ever, as we maintain our relentless focus on delivering great-value clothing and a unique store experience. This is underpinned by a step up in investment in strategic initiatives across digital, product and brand. Significant white space for new stores remains across Europe and the US, which we expect to help drive sustainable growth over the medium and long term.

"Our food businesses delivered good growth and strong profitability this year. We are benefitting from an easing in input costs, as well as our increased investment in marketing, strong commercial execution and good product innovation."