10th Dec 2021 09:13
(Alliance News) - Associated British Foods PLC said on Friday trading across its operations has been in line with expectations, despite the spectre of supply chain disruptions and increasing costs looming.
The London-based food-processing and retailing company said trading-to-date across grocery, sugar, ingredients and agriculture have been in line with expectations. Though the company added that it has been experiencing the impact of port congestion and road freight limitations as well as an escalation in the cost of energy, logistics and commodities.
Associated British Foods said it has been working hard to overcome these difficulties and has been implementing plans to offset issues through operational cost savings and the implementation of price increases "where necessary".
Associated British Foods said its fast-fashion retailer Primark has traded ahead of expectations in the new financial year to date, with improved like-for-like sales compared to the fourth quarter of the previous year, which ended September 18. The company added that its margin for the year-to-date has also been ahead of expectations.
Looking ahead, Associated British Foods said that it expects Primark sales to be significantly better than sales in the comparable period of December 2020 to April 2021 when stores were largely closed.
Associated British Foods said it had been prioritising products most in demand in order to manage disruption in its supply chain. The company said it has stock cover on the vast majority of lines for the Christmas trading period.
Public health measures related to Covid-19 have also hurt the company. Associated British Foods said that to-date it has mainly been experiencing restrictions in trading hours in the Netherlands, the requirement for vaccine passes in Germany and the closure of five stores in Austria.
Despite this, since the year-end Associated British Foods have opened two new stores - one in Vigo, Spain, and one in Catania, Italy - bringing its estate to a total of 400 stores.
Associated British Foods said it expects significant progress at its half-year and full-year results in adjusted operating profit and adjusted earning per share. For financial 2021, the company reported an adjusted operating profit of GBP1.01 billion and adjusted EPS of 80.1p.
Shares in Associated British Foods were up 0.3% at 1,939.50 pence on London in London.
By Heather Rydings; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
AB Foods