By Michael Susin
AB Foods is scheduled to report results for the first half on Tuesday. Here is what you need to know.
REVENUE FORECAST: The British conglomerate is expected to report revenue of 9.90 billion pounds ($12.25 billion), according to a consensus taken from Visible Alpha and based on 13 analysts' estimates. This compares with GBP9.56 billion reported the same period a year ago.
PRIMARK REVENUE FORECAST: Sales at Primark--AB Foods' retail arm and biggest earnings contributor--are expected to increase to GBP4.54 billion, according to Visible Alpha, from GBP4.23 billion a year ago.
SUGAR REVENUE FORECAST: Sales of the sugar division are forecast to increase to GBP1.25 billion from GBP1.19 billion, according to the Visible Alpha consensus estimate.
Shares have risen by around 22% on a 12-month basis and are up 5.6% since the start of the year at GBP24.99.
WHAT TO WATCH
--Investors will look for any changes to AB Foods' guidance for fiscal 2024. The company expects Primark's adjusted operating profit margin, which strips out exceptional and other one-off items, to be above 10%. The improvement is supported by careful stock management, reduced input cost pressures and selective price increases, AJ Bell said in a note.
--Primark's progress in store openings will also be in focus, Liberum analysts Anubhav Malhotra and Wayne Brown said in a note. The company is also expected to comment on plans for the expansion of click-and-collect services to more stores and the development of the product portfolio, they added.
--The sugar division is expected to be the biggest driver of profit increase, AJ Bell wrote. Profit from the agriculture business is expected to rise, while the grocery segment profit is expected flat and the ingredients business is forecast slightly down owing to ongoing investment, AJ said.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
April 22, 2024 04:28 ET (08:28 GMT)
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