Primark-owner Associated British Foods PLC (LSE:ABF) launched a fresh share buyback and rewarded shareholders with a bumper dividend after reporting double-digit growth in revenue and profit.
The FTSE 100-listed company said in the 52 weeks to 16 September 2023, revenue rose 16% to £19.75 billion from £17.00 billion the year before, pre-tax profit climbed 25% to £1.34 billion from £1.08 billion and EPS jumped to 134.2p from 88.6p.
The dividend was hiked 37% to 60.0p from 43.7p, including a special payout of 12.7p and a final dividend of 33.1p, while a further £500 million share buyback is planned.
The firm said it was a “strong performance in a demanding environment”, with “significant growth in group sales driven in large part by pricing actions”.
ABF reported continued momentum across Retail, with revenues well ahead at £9.0 billion, supported by selective pricing and well-received ranges.
Adjusted operating profit in Retail was 3% lower at £735 million, with a margin of 8.2% reflecting decisions on pricing.
There was significant profit growth at Ingredients and good growth in Grocery led by international brands, US focused brands and a recovery in Allied Bakeries.
Sugar sales were well ahead, and profitability ahead but impacted by more challenging British Sugar crop conditions and Vivergo.
Profits at Agriculture were lower due to tough market conditions.
George Weston, chief executive, said: “With Primark margin now moving back to its historic levels, we view the future for this business with confidence. Our food businesses are also in very good shape, and our Sugar business especially should see much better profitability in the year ahead."