11 March 2016

Associated British Foods

Associated British Foods (ABF) remains an interesting growth story

Group 10Created with Sketch.
Price
£31.97
Group 11Created with Sketch.
52 Week High-Low
£32.93 - £24.07
Page 1Created with Sketch.
Net Yield
1.09%
Group 12Created with Sketch.
Hist / Pros Per
30.1- 30.3
Page 1Created with Sketch.
Equity Market Cap
£25,310m

Associated British Foods (ABF) remains an interesting growth story. It’s low cost, international clothing chain, Primark enters its inaugural US roll-out on September 10th with a carefully planned foray into the North Eastern states of the US, a campus-heavy demographic ideally suited to its price point and proposition. The entry into the US has been carefully planned and pitched astutely against strong local competition. Analysts believe that Primark could double both sales and profits within five years with upside from a more concerted roll-out or better than expected US launch. In the Sugar division, the downturn in the EU sugar market seems to be playing out, with analysts now expecting European sugar profits to trough in 2016. A degree of industry consolidation, lower beet prices and cost savings ought to see the Sugar division return to profit in 2017. With its other divisions providing stability, ABF looks set to remain a growth compounder over the medium term, as the Primark offering continues to grow into the international market place.


Also in this issue

I feel very privileged to be the CEO of Debrett’s, especially given its heritage and status in recognising achievement for over two centuries. The business was formed in 1769 and will celebrate its…

Historic context is useful in understanding the energy sector. Growth in demand for energy has been a key feature of economic progress for 250 years. For reasons of space, size of investable universe,…

Whatever the reason, it certainly encouraged a more detailed look at what is going on in the emerging world, of which China is an undoubted leader. The recent performance of these markets has hardly…