FX.co ★ Associated British Foods FY24 Results Climb; Lifts Dividend, Plans GBP 500 Mln Buyback

Associated British Foods PLC, listed under the ticker symbols ASBFY.PK and ABF.L, announced on Tuesday a substantial increase in its fiscal 2024 pre-tax profit, which surged by 43% to reach £1.92 billion, compared to £1.34 billion the previous year.

The company's basic earnings per share (EPS) also saw a significant rise, advancing by 44% to 193.7 pence from last year's 134.2 pence. In terms of adjusted metrics, the profit before tax climbed to £1.96 billion from £1.47 billion in the prior year, while adjusted earnings per share settled at 96.9 pence, down from 141.8 pence in the previous year.

Revenue for the group experienced a modest 2% increase, climbing to £20.07 billion from the previous year's £19.75 billion. When measured at constant exchange rates, this signifies a 4% growth, attributed largely to positive performance in both the Retail and food sectors.

The company's Board has announced a special dividend of 27.0 pence per share and is proposing a final dividend of 42.3 pence per share. In total, this represents a dividend of 90.0 pence per share, marking a 50% increase compared to the prior year. These dividends are scheduled for distribution on January 10, 2025, with the record date set for December 13.

Additionally, Associated British Foods has revealed plans for an extended share buyback program amounting to £500 million, which is anticipated to be finalized by the end of the financial year 2025.

Looking forward, the company expressed optimism for the medium-term outlook, underpinned by robust cash generation and favorable momentum in its Retail and food divisions. Primark, one of its key brands, is aiming for mid-single digit sales growth in the year 2025.