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Associated British Foods plc Pre Close Period Trading update Released : 13 Sep 2021 07:00 RNS Number : 4770L Associated British Foods PLC 13 September 2021 13 SEPTEMBER 2021 Pre Close Period Trading update Associated British Foods plc issues the following update prior to entering the close period for its full year results for the 53 weeks to 18 September 2021 , which are scheduled to be announced on 9 November 2021 . Trading performance Adjusted operating profit in the fourth quarter for both the food businesses and Primark is anticipated to exceed our expectations . Primark's operating profit margin in the period was strong despite lower than expected sales and Sugar will deliver a much - improved profit year - on - year , led by a very strong performance in Illovo . For the full year , we now expect AB Sugar to deliver an even greater improvement in adjusted operating profit over last year than previously expected and Primark's adjusted operating profit , stated before repayment of job retention scheme monies , to be ahead of last year . Our outlook for the Group's adjusted operating profit , stated before repayment of job retention monies , is now expected to be above last year excluding the benefit of the 53rd week this year . The net balance of interest expense , lease interest and other financial income will be lower than last year . The Group's full year effective tax rate is still expected to be in the region of 31 % . Taking this all into account , including the overall trading performance , we expect adjusted earnings per share for the full year to be ahead of previous guidance and marginally ahead of last year excluding the cost of repayment of job retention scheme monies . The strengthening of sterling against most of our trading currencies will result in a loss on translation this year of some £ 35m . References to growth in the following commentary are based on constant currency unless stated otherwise . Net cash Our expectation is that the year end net cash before lease liabilities will now be some £ 1.9bn , compared to £ 1.6bn at the end of the last financial year , despite the impact of the pandemic on Group trading . This outturn reflects the strong cash generating capability of the Group and good working capital management . The improvement in net cash since our last trading update is driven by the Group's higher operating profit and lower than expected Primark inventory . Grocery Grocery revenues are expected to be ahead of last year with adjusted operating profit lower than in the last financial year primarily driven by weaker corn oil margins at ACH . Profit also includes a one - off charge of £ 5m for further restructuring in Allied Bakeries . Twinings and Ovaltine continued to make strong progress with both brands delivering growth . Ovaltine sales growth was primarily in Thailand , China and Switzerland , and was supported by the continuing success of new product launches in a number of countries . Twinings revenue growth was driven by strong new product launches and good performances in France and North America . Twinings has become the leading tea brand in France . AB World Foods , Silver Spoon and Westmill sales were significantly ahead of pre - COVID levels and maintained the sales uplifts achieved last year . We increased marketing support to drive the Mazzetti brand in Acetum , delivering good growth in the US , the UK , the Netherlands and Germany . At Allied Bakeries , sales reduced following our decision to exit the supply of bread to the Co - op . Cost reductions arising from a further consolidation of our operations mitigated the loss of contribution from these sales . As expected , adjusted operating profit for ACH will decline compared to last year , with margins impacted by the later phasing of price increases following a sharp increase in corn oil cost . Substantial price increases have been implemented over the year and a further price increase has been announced . Revenue at George Weston Foods in Australia is expected to be ahead of last year , excluding the benefit of the 53rd week this year . Adjusted operating profit will be lower , mainly driven by a decline in the Don meat business , where although we have seen some recovery in foodservice , we are still experiencing volumes lower than last year . Yumi's delivered strong growth with share gains in its existing products and successful new product launches .