AB Foods year profits rise 3 percent
LONDON (Reuters) - Primark stores owner Associated British Foods (ABF.L), on Tuesday posted a 3 percent rise in annual profits but added it expected little change in earnings in the coming year due to additional interest expenses.
The London-based food and retail group reported adjusted pre-tax profits rose to 632 million pounds in the year to Sept 13, compared to an analyst consensus forecast of 628 million pounds and a range of 621 to 637 million.
The company which also markets Silver Spoon sugar, Twinning tea, Ovaltine beverage and Ryvita crispbread said it was well placed to face the demanding environment in the coming year but it was not immune to a worsening economic climate.
Primark, which accounts for nearly a third of group profit and has 181 stores in Britain, Ireland and Spain saw annual like-for-like up 4 percent, beating most other clothing retailers who have seen negative underlying sales.
Primark is Britain's second-biggest clothing retailer after Marks & Spencer (M&S) (MKS.L) in terms of sales volumes, and M&S also reporting on Tuesday showed first-year pre-tax profits down 34 percent.
AB Foods, 55 percent owned by the family of Chief Executive George Weston, announced its full-year dividend rose 4 percent to 20.25 pence.
AB Foods shares have outperformed the FTSE .FTSE index by 11 percent in 2008 but has lagged the DJ European food and beverage index .SX3P by 8 percent. The share closed on Monday at 707-1/2p.
(Reporting by David Jones)
© Thomson Reuters 2009 All rights reserved.
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