Associated British Foods (ABF) has revealed a £500 million share buyback scheme following a strong recovery in trade.
The first tranche of the programme will take place today in the sum of £250 million, with the parent company of Jordan’s and Twinings anticipating an end date of on or before 28 April 2023.
Under this arrangement, Barclays Bank will act as principal and will make decisions independently from the company.
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However, according to the company, the sole purpose of the share buyback is to reduce the capital of the company, with all ordinary shares repurchased as part of this arrangement will be cancelled.
The news comes as the ABF announced it is facing “substantial and volatile” input cost inflation, which will hit results in its current financial year.
In the year ended 17 September 2022, ABF reported a 42% increase in operating profit to £1.44 billion, up from £1.01 billion in the same period in 2020/21.
The company also announced a 10% rise in food sales, with adjusted operating profit for sugar, agriculture and ingredients ahead of last year.
