ABF.L - Associated British Foods plc

LSE - LSE Delayed price. Currency in GBp
2,027.00
-19.00 (-0.93%)
At close: 4:35PM BST
Stock chart is not supported by your current browser
Previous close2,046.00
Open2,034.00
Bid0.00 x 0
Ask0.00 x 0
Day's range2,006.73 - 2,036.00
52-week range1,554.00 - 2,730.00
Volume545,819
Avg. volume1,386,857
Market cap16.047B
Beta (5Y monthly)0.68
PE ratio (TTM)22.67
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend date12 Dec 2019
1y target estN/A
  • Why I’d buy this ‘hidden’ cannabis stock in the FTSE 100
    Fool.co.uk

    Why I’d buy this ‘hidden’ cannabis stock in the FTSE 100

    Cannabis looks like it could be the next big thing. I would invest in this 'hidden' cannabis stock in the FTSE 100 right now to get into the market. The post Why I'd buy this 'hidden' cannabis stock in the FTSE 100 appeared first on The Motley Fool UK.

  • Stock market crash bargain alert! I’d buy the Associated British Foods share price today
    Fool.co.uk

    Stock market crash bargain alert! I’d buy the Associated British Foods share price today

    The Associated British Foods share price is soaring today as shoppers flock to Primark stores again. But it still looks like a bargain FTSE 100 buy.The post Stock market crash bargain alert! I'd buy the Associated British Foods share price today appeared first on The Motley Fool UK.

  • London shares end higher on vaccine hopes, set for weekly gains
    Reuters

    London shares end higher on vaccine hopes, set for weekly gains

    The blue-chip FTSE 100 <.FTSE> rose 1.3% and the mid-cap FTSE 250 <.FTMC> 1% as a COVID-19 vaccine from Pfizer <PFE.N> and Germany's BioNTech <BNTX.O> was found to be well tolerated in early-stage human trials. Appetite for global equities heightened after data showed record employment growth in the United States at 4.8 million job additions, even as layoffs remained elevated and COVID-19 cases across the country spiked.

  • Primark encouraged by post-lockdown sales but profit to slump
    Reuters

    Primark encouraged by post-lockdown sales but profit to slump

    Trading in British fashion chain Primark's reopened stores has been encouraging but the prolonged coronavirus lockdown means the retailer's full-year profit is likely to slump by about two thirds, owner Associated British Foods <ABF.L> said. All 375 Primark stores were shuttered in March as the pandemic spread. AB Foods said on Thursday that since the reopening of the first Primark stores on May 4, cumulative sales for the seven weeks to June 20 were 322 million pounds ($403 million) and were 12% lower than last year on a like-for-like basis.

  • Will the Associated British Foods share price run continue?
    Stockopedia

    Will the Associated British Foods share price run continue?

    In this article we will quickly re-cap the broker forecasts for Associated British Foods (LON:ABF). The Associated British Foods share price has risen by 5.57%...

  • What to watch: Queues form as shops reopen, sharp sell-off for stocks, and BP writes off $17.5bn
    Yahoo Finance UK

    What to watch: Queues form as shops reopen, sharp sell-off for stocks, and BP writes off $17.5bn

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Upbeat broker recommendations for Associated British Foods
    Stockopedia

    Upbeat broker recommendations for Associated British Foods

    The Associated British Foods (LON:ABF) share price has risen by 6.59% over the past month and it’s currently trading at 1918.8213. For investors considering wh...

  • Zara's Latest Fashions Will Be a Post-Covid Hit
    Bloomberg

    Zara's Latest Fashions Will Be a Post-Covid Hit

    (Bloomberg Opinion) -- Don’t be fooled by red replacing black as this season’s color at Zara-owner Inditex SA.The Spanish fast-fashion behemoth reported its first loss since it went public in 2001 after shutting stores during Covid-19 lockdowns worldwide. But nimble retailers will still prosper as economies open back up again, and Inditex is among them. In fact, with a big investment plan to bolster online sales, the company could well emerge even stronger than before the pandemic.The world’s largest fashion retailer is also aggressively overhauling its store network to focus on more muscular flagships. It has already been closing smaller outlets, while opening fewer, larger stores for the past few years. This will accelerate over the next two years, with between 1,000 and 1,200 stores closed, many belonging to Inditex brands other than Zara, such as Pull&Bear, Oysho and Stradivarius. The aim is to transfer their profit contributions to bigger shops or online.There are important costs related to that transformation. The first-quarter net loss of 409 million euros ($465 million) included a 308 million-euro charge for closing stores. And Inditex hasn’t been completely insulated by the retail dislocation. Net sales fell 44% in the three months from Feb. 1 to April 30 due to the coronavirus impact.But Inditex’s business model came into its own during the pandemic. Most garments are ordered within the fashion season, and the company, which gets about two-thirds of its revenue from Europe, has kept its supply chain tight. About 60% of products come from manufacturers in Spain, Morocco, Portugal and Turkey.In early March, the company scaled back purchases when it saw how the pandemic was developing. In early May, it sped them up again to make sure it had enough playsuits and flimsy blouses on hand for June and July. The strategy worked. Inditex actually ended the first quarter with 10% less stock, an impressive feat when other retailers have been saddled with a mountain of unsold spring and summer garments.At the same time, its online business thrived thanks to efforts including the introduction of radio-frequency-identification technology that tracks where every maxi dress and balloon-sleeve blouse is. This enables online orders to be fulfilled from wherever the stock is, be that in warehouses or stores. As my Bloomberg News colleagues have noted, when shops were closed, Inditex was able to redeploy stock to its digital business. Online sales rose 95% year-on-year in April.To capitalize on this trend, Inditex will spend 1 billion euros between now and 2022 to bolster its internet sales, and a further 1.7 billion euros upgrading its stores and further integrating them with its digital platform. Shops will become distribution hubs as well as places that customers can browse and buy products in real life. The aim is for more than 25% of sales to come from digital channels by 2022, up from 14% in 2019.Despite its strengths, Inditex has not been immune from the pre-Covid-19 pressure on the apparel retail sector, with women generally buying fewer clothes and cheaper rivals, such as Boohoo Group Plc and Associated British Foods Plc’s Primark chain, nipping at its heels. That means the strategic blueprint for the next few years is not without risk.Zara is not the cheapest clothes retailer, and in tougher economic times the chain could prove too pricey for some cash-strapped consumers. What’s more, it could be a tricky time for Inditex to put its faith in big flagships if people emerging from lockdown shun larger stores, malls or city centers. And rivals are not giving up. Even fusty British retailer Marks & Spencer Group Plc said it aimed to speed up its supply chain, including using factories closer to its U.K. market.But thanks to its strong balance sheet, Inditex should be able to stay ahead. The company had net cash of 5.8 billion euros at the end of the first quarter. While Covid-19 has upended retail, some things should stay the same, including Inditex’s superstar status.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Long Lines at Ikea Don’t Spell Retail Boom
    Bloomberg

    Long Lines at Ikea Don’t Spell Retail Boom

    (Bloomberg Opinion) -- Anyone who has ever waited at Primark to pay for cheap workout attire or a bargain dress knows just what a challenge it is to keep the snaking line in the right place. With precautions to control the novel coronavirus’s spread, that logistical nightmare will get even worse. Every second cash register will be shut and there’ll be an employee in charge of enforcing the regimented flow of customers — in one way and out another.Social-distancing rules governing shops are just one of the reasons why any honeymoon for retailers in the first days of reopening may be short lived. Many will soon have to confront hard decisions about whether to shut some stores definitively and how to fend off online competition in a world where people may still be hesitant to go out to shop. Recovery will be a long slog, with more pressure on profits than before the Covid-19 outbreak.Non-essential stores in England, which were forced to close in March, will be permitted to open from June 15. Early indications are good. Ikea stores on the outskirts of London and in the West Midlands drew huge queues when the purveyor of flat-packed furniture (classified as essential) reopened earlier this week. In the U.S., where some states have moved quickly to reopen for business, signs have been encouraging — at least until the civil unrest that forced some store closures again.Take TJX Cos., owner of T.J. Maxx, one of the most touchy-feely retail experiences. It might seem that treasure hunting for a designer gem would be less appealing during a pandemic. But in late May the company said that overall, sales were above the year-earlier period in the 1,100 stores that had been open for at least a week. Even Macy’s Inc., which got caught in the department-store maelstrom, said sales were moderately higher than anticipated.It’s a similar picture in Europe. Earlier this week, Primark, owned by Associated British Foods Plc, said that suburban outlets, such as the one in Hilversum in the Netherlands, were comfortably ahead, even though sales in city-center stores in Berlin and Amsterdam were at less than half of what they were a year ago.There will be pent-up demand when stores open in England, too. During lockdown, online shopping has flourished. Initially, demand was for home furnishings and clothing basics, such as underwear and workout gear. But warm weather, along with a slew of special offers, has encouraged more fashion purchases, such as day dresses, over recent weeks. More markdowns, needed to clear out unsold spring and summer stock, could prompt people to splurge when they can get back out to shop again.But a surge at the reopening doesn’t necessarily mean an enduring rebound. The pandemic has had great human and economic costs, with U.K. unemployment expected to spike in the second quarter. Even if their finances have held up, furloughed workers may be reluctant to spend. People make the most drastic changes to their spending when they lose their job or see their friends and family being laid off. Meanwhile, even though economies are gradually reopening, cancelled weddings, parties and overseas holidays will likely mean a lower level of clothing demand for the remainder of this year.Those who do feel brave enough to splash out may get frustrated with long waits to get into stores or check out. That could be bad news for discount retailers that rely on a high number of relatively low-value transactions. Primark could be hardest hit by social-distancing measures at its busiest stores, which accounted for 10-20% of its total sales before the pandemic, parent Associated British Foods said.Store closures during lockdown pushed even more people to shop online, a trend that’s likely to continue. The digital share of non-food sales in the U.K. could increase to 41% over the next 18 months or so, from about 30% at the end of 2019, according to Richard Hyman, the independent retail analyst. Shifting business online comes with additional costs too.All of these forces will make chains think hard about which stores are worth keeping in their networks. In the U.S., Nordstrom Inc. said it would close 16 of its 116 department stores. Expect similar decisions in Europe, especially if the additional costs associated with equipping stores for social distancing can’t be shared with landlords in the form of lower rents.But some companies are poised to make the most of the turmoil. While Primark may have to deal with some tricky in-store logistics, it should still emerge a winner, given its focus on value, along with cheap-chic rivals Hennes & Mauritz AB and Inditex SA’s Zara. Perhaps that’s why Primark, which has shunned online commerce, is actually opening new stores — such as in Manchester’s Trafford Centre — rather than closing any. Online retailers such as Germany’s Zalando SE and Britain’s Asos Plc, as well as companies with big digital businesses, such as Next Plc, should also be well placed.But even for the winners, the next year or so will be testing. The changes roiling the industry in the space of these five months would have taken five years in normal times. That’s a lot for even the most nimble retailers to deal with.  This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stock market crash: I think these 2 FTSE 100 stocks could help you get rich from the recovery
    Fool.co.uk

    Stock market crash: I think these 2 FTSE 100 stocks could help you get rich from the recovery

    The stock market crash offers investors the opportunity to buy these two FTSE 100 stocks at reduced prices, before they recover.The post Stock market crash: I think these 2 FTSE 100 stocks could help you get rich from the recovery appeared first on The Motley Fool UK.

  • Encouraged by Europe, Primark to reopen England stores on June 15
    Reuters

    Encouraged by Europe, Primark to reopen England stores on June 15

    Fashion retailer Primark plans to reopen all 153 of its stores in England on June 15 as coronavirus restrictions are eased, encouraged by European stores that have already resumed trading. The faster than expected reopening sent shares in Primark's owner, Associated British Foods, up as much as 8% in early Monday trading. All Primark stores were closed over 12-days from March 11 as the virus spread, costing it 650 million pounds ($806 million) a month in sales.

  • What to Watch: Primark to reopen stores, grim UK and EU PMI data, Amigo faces probe
    Yahoo Finance UK

    What to Watch: Primark to reopen stores, grim UK and EU PMI data, Amigo faces probe

    A daily overview of the top business, market, and economic stories you should be watching today in the UK, Europe, and around the world.

  • Reuters - UK Focus

    Britain's M&S ties up with health service for huge clothing sale

    British retailer Marks & Spencer launched a clothing sale on Thursday to help clear stock built up in the coronavirus lockdown, tapping into widespread public support for health workers by giving some proceeds to NHS charities. With Britain having been in lockdown since March 23, the country's store-based clothing retailers are sitting on hundreds of millions of pounds of spring and summer stock, which they are now looking to unload as the restrictions start to ease. M&S, Britain's biggest clothing retailer by sales, said it will donate 10% of the customer purchase price, excluding VAT sales tax, of all sale items to NHS Charities Together, with whom the retailer has an exclusive arrangement.

  • Brokers upbeat on Associated British Foods despite economic uncertainty
    Stockopedia

    Brokers upbeat on Associated British Foods despite economic uncertainty

    The Associated British Foods (LON:ABF) share price has risen by 18.0% over the past month and it’s currently trading at 1874. For investors considering whether8230;

  • Reuters - UK Focus

    Global garment industry calls for support for manufacturers

    A group of employers' organisations, unions and major brands in the garment industry are working with the International Labour Organisation (ILO) to support manufacturers affected by the coronavirus outbreak, the ILO said on Wednesday. Under the agreement, brands and retailers commit to paying manufacturers for finished goods and goods in production, the organisation said in a statement.

  • Reuters - UK Focus

    LIVE MARKETS-Gold could reach $3,000 threshold in 18 months

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. In addition to interest rates and nominal GDP, "central bank balance sheets or official gold reserves will remain the key determinants of gold prices," BofA says in a research note.

  • Reuters - UK Focus

    MORNING BID-COVID gloom drives pain down the oil futures curve

    The great oil collapse continues, but are stock markets starting to shrug that off? MSCI's world stocks are flatlining near two-week lows and Asian shares have reversed early losses. U.S. futures are actually pointing higher following Tuesday's 3% fall on Wall Street.

  • Reuters - UK Focus

    LIVE MARKETS-On the radar: Investors back to the stock market

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. Another day in risk-off mood as concerns about coronavirus impact on the economy are keeping oil prices under pressure, but investors are back to the stock market after yesterday's selloff.

  • Primark owner scraps dividend, takes charge for surplus stock as coronavirus crisis hits
    Reuters

    Primark owner scraps dividend, takes charge for surplus stock as coronavirus crisis hits

    Primark owner Associated British Foods <ABF.L> will not pay an interim dividend to save cash during the coronavirus crisis and has booked a 284 million pound ($352 million) charge to reflect an expected lower value of stock when its stores reopen. All of Primark's 376 stores in 12 countries have been closed since March 22, representing a loss of 650 million pounds ($806 million) of net sales per month. "One of the world's great clothing retailers is entirely shut," Chief Executive George Weston said on Tuesday.

  • Baking Brits Give Primark Owner a Smart Look
    Bloomberg

    Baking Brits Give Primark Owner a Smart Look

    (Bloomberg Opinion) -- Conglomerates are about as appealing as a pink fluffy sweater left stranded on Primark’s shelves at the start of the lockdown in March. But the devastation to sales wrought by the new coronavirus has shown why, for once, it might make sense that the retailer’s parent, Associated British Foods Plc, combines clothing, groceries and agriculture in one big company.Primark’s stores are closed, and the discount fashion chain doesn’t sell online. It has gone from taking 650 million pounds in ($805 million) a month before the last of its stores shut their doors on March 22, to selling nothing at all. Even with efforts to cut costs, and a tax break, the retailer’s cash outflow is 100 million pounds a month. It has taken a 284 million-pound provision for the stock that it will have to sell at a lower price to clear it out.While the parent company’s name hides it well, Primark is by far the biggest element of Associated British Foods, accounting for almost 50% of sales in 2019 and more than 60% of operating profit. This year the proportion will be much lower after at least two months of not trading. But if Primark were a stand-alone group it would have no revenues at all for that period. The smaller divisions, which range from corn sugar and tea to Southeast Asian cooking spices, are at least bringing in cash.What’s more, ABF’s grocery arm has been helped by the panic buying at the start of the pandemic crisis, as consumers around the world stocked up. At its bakery brands, Allinson and Kingsmill, it is selling every loaf of bread it can make. Similarly, the craze for home baking as people try to fill their time in lockdown is driving demand for flour. This should also help sales of sugar. Demand for food more broadly could feed through to other divisions such as agriculture and ingredients.The London-based company is also able to benefit from a strong balance sheet. It had net cash of 801 million pounds as of Feb. 29.It’s not clear how long Primark will be out of action. Reopening won’t be straightforward in a world where social distancing becomes the norm. The retailer will need to reconfigure stores, and deal with stock, like those pink fluffy jumpers that won’t sell well in higher summer temperatures. That means the conglomerate structure should help ease the burden for a while yet.But at some point the world will return to some semblance of normality. Shopping malls and main streets are likely to see a significant shake-up, with some winners emerging in a much stronger position. Primark, with its focus on low prices, will probably be among them. It could also pick up market share from those that fail.If the group’s U.S. business continues to prosper, Primark should resume its growth trajectory once more. The prospects here are good. The inevitable economic downturn that will follow the pandemic should favor discount retailers. What’s more, with some well-known U.S. names likely disappearing, and others closing swathes of stores, ABF will have a surfeit of space to choose from if it expands its network.Once Primark’s sales pick back up, it risks pulling away from ABF’s smaller divisions again. That will make a split or a spin-off look more appealing once more.The logic of having discount fashion alongside diet crispbreads won’t be evident forever. But right now, investors in ABF should be thankful for it.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • What to watch: Primark and John Lewis furloughs, stocks fall, SAP boss steps down
    Yahoo Finance UK

    What to watch: Primark and John Lewis furloughs, stocks fall, SAP boss steps down

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Coronavirus: Primark owner warns 'we have sold nothing' since shutdown
    Yahoo Finance UK

    Coronavirus: Primark owner warns 'we have sold nothing' since shutdown

    Associated British Foods said it had scrapped its dividend, furloughed 68,000 employees across Europe, and suspended its earnings guidance.

  • Reuters - UK Focus

    Primark owner AB Foods right not to pay dividend, says boss

    Primark owner Associated British Foods' decision not to pay an interim dividend to shareholders was "absolutely the right thing to do" given the coronavirus crisis, its boss said on Tuesday. Omitting the payment for the first time in two decades would save the company about 100 million pounds ($124.2 million), Chief Executive George Weston told Reuters. Due to the pandemic all of Primark's 376 stores in 12 countries have been closed since March 22, representing a loss of 650 million pounds of net sales per month.

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