DAVY VIEW

Associated British Foods (ABF) expects FY24 profitability to be broadly in line with expectations, with healthy H2-24 Primark profitability (supported by strong H2-24 margins) and strength in the Grocery division to offset expected weakness in outer year Sugar profitability. However, looking ahead to FY25, management has guided that a material reduction in Sugar profitability, driven by softer European sugar prices, is expected to significantly impact adjusted operating profit. At first glance, we expect to reduce our FY25 operating profit forecast by c.mid- to high-single- digits.