Sunday, July 12, 2015

ABF operating report Q3 2015


ABF, OR, Q3 2015, front page

The new regulations in the UK says that the publicly traded company do not have to arrive with interim reports and since those things do cost money ABF directly cut it. They still arrive with a little statement but the content of that is minimal. Some people definitely want a report each quarter to be able to follow the companies they own and for me it does not matter that much. I prefer to get one good report per year than a couple of bad ones each quarter.

For the report in full please go here and for the previous report from ABF please visit ABF annual report 2014 and to find out more regarding ABF please click on analysis of ABF 2014.

The report more or less only contained that due to currency effects, strong GBP and strong USD, the revenue was flat compared to Q3 2014. ABF have also interacted with one of my other companies namely BP and they have bought out BPs part of Vivergo Fuels which is a bio-ethanol producer using wheat as the basis. Generally I find it inappropriate to make bio-fuel out of none waste material.

The sugar segment will most likely enjoy higher prices next year but on the other hand they have contracts which is 20% less than this year so that does not sound very good and I will expect more years to come with low earnings from the sugar part. 

Retail, meaning Primark, is doing very well and that I personally also observe as often as I can. they are making some re-organizations for logistics and selling space reasons and then they are preparing for the launch in America and more precisely in Boston.

I will continue to wait for the magic word of Primark going solo but until the other segments are performing better I guess that thought will not even cross the managers heads.

Conclusion: ABF continues to be a waiting game and in the meantime Primark keep pushing forward and increasing the value of the entire conglomerate. I will of course continue to be a shareholder.

1 comment:

Fredrik von Oberhausen said...

My mother informed me yesterday that she had read an article that concerned H&M and Primark. Apparently the writer claimed that H&M is getting price squeezed by Primark.

This is nothing new to me but I find it interesting that it is first now being brought up in Swedish media. I guess part of the reason is that Primark is not yet established in Sweden. Still... H&M is still doing very well and I do believe that they will continue to do so for as long as they keep starting new stores. When I check out the amount of customers in Primark I always also go directly to the closest H&M to see what is going on there and I have yet to see an empty H&M.