AB Foods Expects Primark Sales to Rise 4% in Fiscal Year 2019; Backs Guidance
September 09 2019 - 2:48AM
Dow Jones News
By Adria Calatayud
Associated British Foods PLC (ABF.LN) said Monday that sales at
its flagship Primark brand are expected to rise 4% at constant and
actual exchange rates in fiscal 2019, and backed guidance for the
full year.
For the year ending Sept. 14, the company said higher sales at
its Primark low-cost fashion chain will be driven by increased
selling space, which will be partially offset by a 2% decline in
like-for-like sales. In the fourth quarter, Primark sales growth
increased and the performance of its of new autumn-winter range has
been encouraging, AB Foods said.
Margins at Primark are expected to be lower in the second half,
reflecting the effect of a stronger U.S. dollar, AB Foods said. In
the first half, Primark's operating margin was 11.7%, ahead of the
year-earlier period, the company said.
The food producer and clothing retailer said sugar revenue and
adjusted operating profit will be down compared with fiscal 2018,
hit by lower European Union sugar prices and a poor crop in China.
Grocery revenue is expected to be ahead of last year with adjusted
operating profit well ahead, AB Foods said.
The company said it expected adjusted earnings per share to be
in line with the prior year for the group as a whole. Strong profit
performances from Primark and the group's grocery operations are
expected to be offset by the anticipated decline in AB Sugar, the
company said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
September 09, 2019 02:33 ET (06:33 GMT)
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