AB Foods says currency pressures will lead to modest drop in earnings
Primark owner Associated British Foods reaffirmed its guidance for the 2016 financial year, saying currency pressures will likely lead to a modest decline in adjusted operating profit and earnings.
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In a statement at the company’s annual general meeting, chairman Charles Sinclair said the good underlying trading achieved last year has continued into the new financial year which has started well.
He said investment in expansion opportunities will continue across the group, with greater stability expected in sugar profit ahead of EU quota removal in 2017.
However, he added: “There has been little movement in exchange rates since the year end and our view on the likely net impact on the translation of our overseas results and also on the transactional exposures at Primark and European sugar is unchanged.”
At 1155 GMT, AB Foods shares were down 0.3% to 3,469p.