Associated British Foods Reiterates Growth Expectations for Fiscal Year 2018

Associated British Foods PLC (ABF.LN) said Friday that it is reiterating its outlook for financial 2018 and expects progress in adjusted operating profit and adjusted earnings per share, as previously guided.

The food-and-retail company said the expansion of budget-clothing retailer Primark's selling space will continue. It has already opened five new stores since the end of its financial year on Sept. 16, it added. AB Foods said its Primark margins are in line with the prior financial year and that it expects an increase in retail profit.

AB Foods said it also expects progress from its grocery, agriculture and ingredients units. However, the company said that higher volumes and lower costs in its sugar business will only partially mitigate the effect of lower selling prices in the European Union.

It added that it expects no material effect on profit from currency exchange at current rates.

Shares are up 23 pence, or 0.8%, to 2,875 pence at 1115 GMT.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

December 08, 2017 06:41 ET (11:41 GMT)