Primark owner AB Foods profit up 32% but sugar weighs on outlook
Corrects paragraph 1 to say "accelerating weakness" in sugar business not "falling profits"
LONDON, Nov 5 (Reuters) -Associated British Foods ABF.L reported a 32% rise in full-year profit, with a robust performance from its grocery division and a solid outcome from its Primark clothing business partially offset by accelerating weakness in its sugar operations.
In the year to Sept. 14, the group's adjusted operating profit, its preferred earnings measure, rose to 1.998 billion pounds ($2.6 billion) from 1.51 billion pounds in 2023/24. Revenue climbed 2% to 20.1 billion pounds.
Looking ahead, the group said that overall it is"well-positioned".
However, it reiterated its caution on sugar due to a recent reduction in European sugar pricing. It forecast adjusted operating profit for sugar in 2024/25 to fall to between 50 million and 75 million pounds from the 199 million pounds made in 2023/24, before recovering in the following year.
The group said Primark is targeting mid-single percentage digit sales growth in 2024/25, with adjusted operating margin in line with the 11.7% achieved in 2023/24.
($1 = 0.7712 pounds)
Reporting by James Davey; editing by Sarah Young and Sachin Ravikumar
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