Sunday 11 March 2018

ABF annual report 2017

Front page of ABF annual 2017 report

The report from ABF, that was published some time ago, was very good. What I very much liked to see was that Primark keeps growing and on top of this their Sugar business unit have managed to improve their profits. It is still not up at their peak days but it was a very good improvement that they could show us shareholders.

For the report in full please go here and for the previous report from ABF please visit ABF annual report 2016 and to find out more regarding ABF please click on analysis of ABF 2017.

When we look into the table below then we see that they managed to increase their revenue from 13.4 bn GBP to 15.4 bn GBP which is excellent. The costs also increased and the biggest reason for an excellent profit increase (from 0.8 bn GBP to 1.2 bn GBP) comes from that they made a good sale of one of their businesses.

Income statement ABF 2017

The reason why I say that sugar has recovered slightly is due to that they increased their profits from 35 mn GBP to 223 million GBP. Ingredients also did very well with an increase from 93 million GBP to 125 million GBP. Primark had a excellent revenue increase from 5.9 bn GBP to 7.1 bn GBP however the profit increase was only around 40 million which is very clearly showing how the retail business is getting squeezed from all direction.

Conclusion: I am still waiting for Primark to be released from the rest. With a recovering sugar business the chance is getting bigger however with such a low profit increase then the chance of that decreases once again. I will of course remain as a shareholder and will continue to regret that I did not sell them when they were up at over 50 € per share.

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