1428 GMT - AB Foods reported a robust 1H with broad-based improvement across its portfolio despite Primark's volume remaining challenged, Barclays analysts Warren Ackerman and Patrick Folan say. The British conglomerate's standout figures were the 39% increase in adjusted operating profit and 46% rise in adjusted EPS, the analysts highlight. Despite the focus on Primark's margin beat, the strength of grocery, ingredients and sugar businesses was equally impressive, they say in a note. "Overall the results show a clear normalization of trends after the Covid years, supply chain challenges and inflation headwinds and the bounce back in profitability is a testament to the resilience of AB Foods' business model which some had questioned," they add. Barclays lifts the price target on the stock to GBP27 from GBP24. Shares are up 9.6%, and up 34% on a 12-month basis. (michael.susin@wsj.com)
(END) Dow Jones Newswires
April 23, 2024 10:30 ET (14:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments