Shares of Associated British Foods plc (LON: ABF) ended down on Tuesday after the multinational said its adjusted operating profit was hit in the first half of fiscal 2023.
Associated British Foods stock down despite revenue growth
On an adjusted basis, the British company reported £684 million ($854 million) of operating profit for H1 versus a higher £706 million in the same period last year.
Its revenue, though, went up 21% year-on-year to £9.56 billion. According to CEO George Weston:
This period was marked by extreme and volatile inflation in all our businesses. We have taken considerable action to mitigate these costs through operational cost savings and pricing.
Also on Tuesday, the company’s board announced 14.2 pence a share of interim dividend. For the year, Associated British Foods stock is up more than 20% at writing.
How did Primark perform in the first half of 2023?
The U.K. stock was weighed today even though Primark sales went up 20% in the first half of the year as well. At £4.23 billion, they were roughly in line with guidance. CEO Weston also said in the press release:
Primark has been very successful in this period in attracting new customers with its proposition of good quality merchandise combined with price leadership and well invested stores.
Associated British Foods reiterated today that its full-year adjusted operating profit will remain roughly unchanged from fiscal 2022. Comparable sales growth at Primark is expected to moderate in H2, it added.
Wall Street currently has a consensus “overweight” rating on Associated British Foods stock.
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