AB Foods profit boosted by Primark sales, declares special dividend


By Jaime Llinares Taboada

Associated British Foods PLC on Tuesday reported higher profits for the fiscal year ended Sept. 18, as Primark earnings rose, and declared a special dividend alongside the ordinary payment.

The British conglomerate, which owns the Primark fashion retailer, made a pretax profit of 725 million pounds ($983.4 million) in fiscal 2021, up from GBP686 million a year earlier.

Adjusted operating profit fell 1% to GBP1.01 billion. Primark’s adjusted operating profit was up 15% at GBP415 million.

Revenue was broadly flat at GBP13.88 billion.

AB Foods said that it expects Primark trading to continue to improve, with sales recovering at least the GBP2 billion lost due to store closures in the last fiscal year, which should lead to Primark’s adjusted operating margin rising above 10%.

The company declared a final dividend of 20.5 pence a share and a special dividend of 13.8 pence, bringing combined full-year payments to 40.5 pence.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

Corrections & Amplifications

This story was corrected at 0803 GMT. The original, in the third paragraph incorrectly said that adjusted operating profit rose 1%.

Associated British Foods said that its fiscal 2021 adjusted operating profit fell 1% to GBP1.01 billion, rising 2% on a constant-currency basis. “AB Foods Reports FY 2021 Earnings Rise with Primark Growth, Declares Special Dividend,” at 0724 GMT, incorrectly said that adjusted operating profit rose 1%.

This article was originally published by Marketwatch.com. Read the original article here.

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