Saturday 11 February 2017

ABF annual report 2016

ABF, 2016, annual

When I saw the front page of the report I must admit that I got slightly disturbed. It directly brought back memories of Asian Bamboo and my massively failed investment that I ended up doing. 
There is one reason and one alone for why I own ABF and that is due to Primark. Living here in the UK now it is very clear that they have saturated the market here because the amount of visitors are more similar to in an H&M store than the insane amount of people that entered the Primark stores in Germany.

For the report in full please go here and for the previous report from ABF please visit ABF annual report 2015 and to find out more regarding ABF please click on analysis of ABF 2015.

Looking at the statement below we can see that ABF did indeed increase their sales slightly. They are a global company which means that they have profited massively from a decreased valuation of the GBP. They have claimed since a long time to be working on and decreasing their costs... I do not really see that here. The profits are up by over 50% and yet they only increase the dividend by 5% so they know that the year was good.

ABF, 2016, statement

If one takes a look at the different segments of this odd conglomerate then one can really see all the issues with Sugar. It used to bring in the big bucks and these days they are hardly even worth mentioning with their 34 million in profits.

Conclusion: Due to the decreased valuation of the pound sterling ABF profited immensely and will continue to do so as long as it remains pushed down. I still wait for the day when they will break Primark loose from the rest of the conglomerate. I will remain as a shareholder in ABF.

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