Surge in profit for Associated British Foods

08 Nov 2017 --- UK multinational food processing and retailing company Associated British Foods has reported that group revenue has increased 15 percent to £15.4 billion (US$20.2 billion) in the year to September 16. Statutory operating profit is up 21 percent to £1,336m (US$1,754 million) and with the benefit of a profit on the sale of businesses, profit before tax is up 51 percent to £1,576m (US$2,070m), while basic earnings per share up 47 percent to 151.6p (US$199.13).

“This was a highly successful year for the group,” says George Weston, Chief Executive of ABF.

“These results reflect our international diversity, and the strong underlying performance of our businesses was driven by management actions throughout the year. Capital investment was a record as we continued to pursue the opportunities to grow our businesses into the future.”

Other financial highlights include: Adjusted profit before tax up 22 percent to £1,310m (US$1,720 million), adjusted earnings per share up 20 percent to 127.1p (US$166.95), dividends per share up 12 percent to 41.0p (US$53.85).

Adjusted operating profit is stated before the amortization of non-operating intangibles, transaction costs and profit losses on disposal of non-current assets. The company says that these items, together with profit losses on the sale and closure of businesses, are excluded from adjusted profit before tax and adjusted earnings per share. 

All adjustments to profit measures are shown on the face of the consolidated income statement. Constant currency is derived by translating the 2016 results at 2017 average exchange rates.