Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

AB Foods Reports Higher Primark Sales as Clothing Chain Expands

Associated British Foods Plc reported higher clothing sales as expansion of the low-cost Primark chain offset adverse currency shifts.

Primark’s sales rose 9 percent in the first 40 weeks of its year, AB Foods said in a statement on Thursday. Excluding currency shifts, sales rose 13 percent.

The strengthening of the dollar against the euro has proved a thorn in the company’s side this year, weighing on profit at its sugar and fashion businesses. AB Foods reiterated that exchange rates should reduce full-year earnings by about 25 million pounds ($39 million). It also confirmed earlier guidance that adjusted earnings per share will decline “modestly” in the current financial year.

London-based AB Foods has come to rely on Primark for growth as record global supplies have led to a slump in profitability at its sugar-production business. The retailer is expanding across Europe and into the U.S., with its first outlet there set to open in Boston in September.

The company said it expects a decline in the Illovo sugar business’s operating profit. Group sales were unchanged in the 40-week period.

Bloomberg News, edited by ESM

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days