AB Foods Group 16-Week Sales +22%; Primark Sales +22%
January 12 2017 - 3:04AM
Dow Jones News
By Ian Walker
LONDON--International food, ingredients and retail group
Associated British Foods PLC (ABF.LN) said Thursday group revenue
for the 16 weeks ended Jan. 7 rose 22%, boosted by sterling
weakness, with sales at its Primark budget fashion chain also up
22%, both at actual exchange rates.
On a constant-currency basis, group sales were up 10%, and
Primark's sales were up 11%.
The company, which houses the Twinings tea and Ovaltine brands,
said its outlook for the full year remains unchanged with progress
expected in group adjusted operating profit and adjusted earnings.
The adjusted figures strip out exceptional and other one-off
items.
AB Foods, which has opened five Primark stores in the U.S., most
recently in Connecticut, New Jersey and Pennsylvania, reiterated
its operating profit margin would decline as the year progresses
due to the strength of the U.S. dollar on input costs. However, it
said foreign-exchange contracts are now in place for most of the
remaining purchases for this financial year.
At the time of its annual general meeting in December, the
company said it expected to benefit from the continued fall in the
British Pound, but added Primark's margins would be hit because it
buys most merchandise in U.S. Dollars.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
January 12, 2017 02:49 ET (07:49 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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