Is Associated British Foods Too Reliant On Primark To Offset Sugar Declines?: Analysis
A leading analyst has suggested that Associated British Foods's investors may be starting to worry about the group's reliance on its Primark fashion chain to offset declines at its sugar arm.
AJ Bell investment director Russ Mould was commenting as AB Foods issued a trading update in which it said that it expected Primark's full-year sales to be 5.5% ahead of last year at constant currency levels, driven mainly by increased selling space. Like-for-like sales are expected to be 2% lower, however.
“Investors may be getting worried about the ongoing ability of Associated British Food’s Primark business to get the rest of the company out of trouble," Mould wrote.
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