Associated British Foods Set to Report FY2023 Results

Sales Forecast

Associated British Foods, the owner of fashion retailer Primark, is set to release its sales figures for the fiscal year ended September 16. Analyst estimates compiled by FactSet predict sales of £20.05 billion ($24.82 billion), up from £17.0 billion in fiscal 2022.

Adjusted EBIT Forecast

AB Foods expects its adjusted operating profit, which excludes exceptional and one-off items, to improve from last year's £1.435 billion. Deutsche Bank estimates that the company will report an adjusted operating profit of £1.475 billion.

Adjusted EPS Forecast

According to AJ Bell, the company is projected to report adjusted earnings per share of 138 pence for this year, with further growth to 159 pence expected in fiscal 2024.

Dividend Forecast

Investors anticipate a rise in the total dividend to 48 pence per share, up from 43.7 pence a year ago.

Key Highlights to Watch

Primark's Fiscal 2024 Guidance

Investors will be interested in Primark's EBIT margin recovery and may expect comments on the topic. Lower freight rates, input costs, and foreign-exchange rates should support an increase. Additionally, Deutsche Bank analysts highlight the importance of Primark's current performance, especially following a weak start to September.

Grocery Sales Growth

Deutsche Bank suggests that the company's grocery division will continue to experience sales growth and improved EBIT margins thanks to deflationary trends.

Shareholder Return

Following the completion of a £500 million share buyback, investors will be curious to see if Associated British Foods has room for further capital returns.