Member Article

Associated British Foods boosted by Primark success

Primark owner, Associated British Foods (ABF) increased its dividend by 15% after the group reported increases in revenue and profits.

ABF’s final results showed a 17% rise in pre-tax profits, while revenues improved by 11% to £12.3bn.

The firm’s retail division grew across Europe with the creation of 10,000 jobs during 2012, while Primark produced revenue increases of 15%, although this was weakened by the instability in the Eurozone.

The group currently employs over 100,000 people in 46 countries across the world, and has a hand in groceries, agriculture, sugar and ingredients, as well as the retail arm with Primark.

ABF’s grocery division, which owns household name brands such as Twinings and Ovaltine, did not fare as well, with profit falls of 23%.

Profits in the agriculture arm were flat year on year, while ABF sugar profits rose sharply by 62%, and the group’s ingredients arm suffered a 48% drop in profits.

George Weston, Chief Executive of Associated British Foods, said: “These are very good results for the group and include exceptional performances from AB Sugar and Primark.

“Global economic uncertainty remains but we have opportunities for further investment and the strength of the group balance sheet and a strong cash flow will enable us to pursue them with confidence.”

ABF Chairman, Charles Sinclair said expectations from 2011 had been met, and commented that the group’s results would be good for a stable and economically sound climate.

He added: “I am … pleased that we have been able to report results throughout the course of the year that have met those expectations, despite the enduring challenges of subdued economic growth and continued pressure on consumer disposable incomes in the world’s developed economies.”

This was posted in Bdaily's Members' News section by Miranda Dobson .