Associated British Foods' (ABF) results on Tuesday will reflect a surge in international sales growth at its clothing retail arm Primark, according to analysts.
The FTSE 100 company will release its half-year report on Thursday which is expected to show a 44% jump in profits to £222m at Primark - contributing almost half of its parent company's bottom line.
Primark accounts for about a third of ABF's sales, with agriculture, sugar, grocery and ingredients accounting for the rest.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, Credit Suisse showed caution last week ahead of the statement, downgrading ABF to 'neutral' from 'outperform'.
"It is very easy to get carried away with ABF estimates, in our view," the broker said on April 16th.
"Add up Primark growth, margins in grocery getting to 10%, returns on recent investments and reversing Chinese/Australian losses, and forecasts can get out of hand. But we think the nature of ABF is 'swings and roundabouts' - it would be a truly exceptional few years were everything to go right.
"Primark profit growth looks strong, but we doubt it can continue at the 7.0% like-for-like seen in the first half. We tweak our estimates ahead of interims on April 23rd."
Primark aside, ABF's crops of cotton, wheat and sugar also play an important part in the make-up of the group's profits. Credit Suisse said it was a less predictable section of the company as weather, politics, retailers and competitors are hard to factor.
Tuesday April 23rd
INTERIMS
Associated British Foods
Next Fifteen Communications
INTERIM DIVIDEND PAYMENT DATE
British Sky Broadcasting Group
QUARTERLY PAYMENT DATE
Dow Chemical Co, JP Morgan Chase & Co, Middlefield Canadian Income PCC, Schroder Income Growth Fund
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
House Price Index (US) (15:00)
New Homes Sales (US) (15:00)
Q1
ARM Holdings, OJSC Magnit GDR (Reg S), Telekomunikacja Polska S.A GDR (Reg S), Torchmark Corp.
FINALS
Aseana Properties Ltd., JSC Federal Grid Company of Unified Energy System GDR (REG S), LiDCO Group, Snoozebox Holdings
SPECIAL DIVIDEND PAYMENT DATE
DP World Limited
AGMS
Herald Inv Trust
Premier Energy & Water Trust
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Survey (11:00)
Public Sector Finances (09:30)
FINAL DIVIDEND PAYMENT DATE
Jupiter Fund Management
IMSS
Premier Foods
TRADING ANNOUNCEMENTS
Carpetright
RD
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
