ABF adjusted operating profits to be well ahead of last time
StockMarketWire.com - Associated British Foods expects adjusted operating profit to be well ahead of last year. In its third quarter update in July the group reported an improvement in its expectation for the full year underlying operating performance as a result of a stronger profit delivery from Primark.
But a pre-close update today said that since then it had experienced an even lower level of markdown which had further improved the full year outlook.
It said: "Net interest expense will be at a similar level to last year and, as previously explained, an increase in other financial expense will reflect the impact of last year's fall in bond yields on our UK defined benefit pension scheme.
"The underlying tax rate for the full year will be slightly lower than that of the first half and, as expected, will be higher than last year which benefited from the revaluation of UK deferred tax liabilities following the announced reductions in the UK corporation tax rate.
"In summary, we expect to report good growth in adjusted operating profit and adjusted earnings per share for the group for the full year."
ABF also announced that it had reached agreement to acquire Acetum, the leading Italian producer of Balsamic Vinegar of Modena (BVM), one of the best known vinegars in the world, which has been granted European Protected Geographical Indication (PGI) status due to its unique manufacturing tradition and provenance, as well as its high quality.
ABF said completion of the transaction was subject to antitrust clearance in Germany and Austria.
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