Associated British Foods (AFO2) AI Stock Analysis
Associated British Foods
(Frankfurt:AFO2)
No summary available
Associated British Foods (AFO2) vs. iShares MSCI Germany ETF (EWG)
- Market Cap
- EUR 18.13B
- Dividend Yield
- 3.13%
- Average Volume (3M)
- 27
- Price to Earnings (P/E)
- 14.3
- Beta (1Y)
- 0.24
- Revenue Growth
- -4.71%
- EPS Growth
- -26.71%
- Country
- Germany
- Employees
- 138,000
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Packaged Foods
Associated British Foods Business Overview & Revenue Model
Company Description
Associated British Foods plc (ABF) is a global diversified enterprise, encompassing significant operations in food production, ingredient manufacturing, and retail. Its activities are organized across five principal segments: Grocery, Sugar, Agricult...
Associated British Foods Earnings Call Summary
Mixed results: the group demonstrated strong strategic and operational progress (Primark UK recovery, digital and CRM growth, store expansion, franchise success, improved free cash flow, sustained shareholder returns and a resilient balance sheet). However, near‑term financial results were weaker with group adjusted operating profit down 18% and notable challenges in sugar (full‑year loss now expected), Grocery (US oils), some Ingredients and Agriculture segments, plus margin pressure from markdowns. Management reiterated unchanged full‑year guidance except for sugar and highlighted H2 weighting, but geopolitical cost inflation and consumer demand risk remain key uncertainties.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The Group reiterated full-year guidance that, aside from sugar, is unchanged: group adjusted operating profit and adjusted EPS are expected to be below last year, with profit phasing weighted to H2; H1 group revenue was £9.5bn (flat; -2% at constant currency) and group adjusted operating profit was £691m (down 18% at constant currency) with adjusted EPS down 15%. Primark delivered £4.7bn sales (up 2%) but like‑for‑like sales were -2.7% (UK +3%, LFL +1.3%), H1 margin 10.1% and full‑year Primark margin expected at approximately 10%; store rollout contributed c.4% of sales. Food revenue fell 3% (Grocery £2.1bn) with Grocery profit expected moderately below last year and Ingredients guidance unchanged; Sugar H1 sales were -9% with an adjusted operating loss of £27m and is now expected to deliver a full‑year adjusted operating loss. Balance sheet and cash guidance: H1 capex £534m (full‑year c.£1.2bn), free cash flow £71m (vs £27m), interim dividend 20.7p in line with last year, £187m of £250m buybacks completed (£63m remaining), H1 net debt including leases c.£3.0bn (leverage 1.2x), total liquidity £2.2bn (including £1.8bn committed facilities) and a pension surplus of £1.7bn; management expects the near‑term cost impact from the Middle East conflict to be manageable in 2026 given current hedges.
Associated British Foods Peers Comparison
Overall Rating
MKC81Outperform
INGR66Neutral
KHC53Neutral
GIS48Neutral
CAG44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MKC | 81Outperform | $12.73B | 8.52 | 22.32% | 4.06% | 13.23% | 91.32% |
| INGR | 66Neutral | $6.12B | 10.43 | 13.46% | 3.39% | -1.38% | -10.81% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| KHC | 53Neutral | $28.86B | -8.51 | -8.44% | 6.57% | -1.62% | 36.06% |
| GIS | 48Neutral | $18.33B | -20.78 | -10.69% | 7.12% | -4.49% | -131.46% |
| CAG | 44Neutral | $6.96B | -3.66 | -26.28% | 8.41% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DE:AFO2 | Associated British Foods Plc | 23.00 | -2.11 | -8.42% | |
| CAG | Conagra Brands | 14.57 | -1.78 | -10.89% | |
| GIS | General Mills Inc | 34.29 | -9.14 | -21.05% | |
| MKC | McCormick & Company Inc | 47.29 | -14.33 | -23.25% | |
| INGR | Ingredion | 96.97 | -13.55 | -12.26% | |
| KHC | Kraft Heinz Co | 24.34 | 1.57 | 6.89% |
Disclaimer
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