Shares in Associated British Foods (LON:ABF) have advanced in London this morning, as the company unveiled a rise in interim revenue and reaffirmed its full-year outlook. The Primark owner, however, also posted a drop in half-year profit, pressured by weak performance at its Sugar business.
As of 09:28 BST, AB Foods’ share price had added 2.75 percent to 2,654.00p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.08 percent lower at 7,192.47 points.
AB Foods posts interim update
AB Foods announced in a statement this morning that its revenue had inched two percent higher to £7.42 billion in the 24 weeks ended March 3. The group’s adjusted operating profit, however, dipped one percent to £648 million, while its statutory operating profit came in three percent lower at £618 million.
“The group made progress in this period. Good sales and profit growth was achieved by all of our businesses at constant currency, other than Sugar, where the reduction was as expected,” the group’s chief executive George Weston explained in the statement, adding that AB Foods’ full-year outlook remained “unchanged with progress expected in both adjusted operating profit and adjusted earnings per share”.
Today’s update comes after the Primark owner recently flagged ‘progress’ in its half-year earnings and reaffirmed its outlook for the full year.
Analysts weigh in on H1 results
“Just as Primark and others in the sector were decking the shelves with coats and winter clothes, we got an unusually warm October, and the timing of the Beast from the East will hardly have boosted early sales of the Spring/Summer collection,” Hargreaves Lansdown’s George Salmon commented, as quoted by Proactive Investors. “However, that bout of unseasonably cold weather is now behind us, and in any case investors know being open to the elements is just part and parcel of the retail game.”