Associated British Food’s first-quarter revenue rose 0.5% to £6.7bn, ignoring the impact of exchange rate movements. Within that, Primark saw its revenue rise 1.9% to £3.4bn, and it was a mixed performance across its other business segments.
A tough comparable period and a “challenging retail environment” saw Primark lose market share and like-for-like revenue fall 6.4% in the UK. International performance was much better, more than offsetting this decline as the group opened seven new stores across the US and Europe in the period.
Revenue in the Sugar division fell 2.1%, with growth in Africa being more than offset by a decline in European sales prices.
Primark’s full-year revenue guidance has been lowered slightly from mid single-digit to low single-digit growth.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Associated British Foods key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.