12th Sep 2016 06:15
LONDON (Alliance News) - Associated British Foods PLC on Monday said it now expects operating profit for its full financial year to be ahead of the prior year.
AB Foods, which owns discount fashion retailer Primark, British Sugar and agriculture and consumer goods businesses, said its underlying operating performance in the second half of its financial year ending September 17 was ahead of its expectations, with the weakening of sterling since the EU referendum resulting in a translation benefit.
AB Foods said it now expects operating profit and earnings per share to be ahead of the prior year.
By division, revenue is expected to increase within the grocery, ingredients, sugar and retail businesses, but profit in the agriculture business will be below last year due to a number of challenges faced in the year.
"As noted in our last trading update, if current sterling exchange rates continue they will have both positive and negative effects on the group's operating profit next year. There would be an adverse transactional effect on the profit margin on Primark's UK sales, a favourable transactional effect on British Sugar's margins and a translation benefit on group profits earned outside the UK," AB Foods said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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