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AB Foods maintains full year guidance on strong Primark

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AB Foods maintains full year guidance on strong Primark
Shoppers carry Primark bags in central London, Britain, November 3, 2017. REUTERS/Toby Melville   -   Copyright  Toby Melville(Reuters)
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LONDON (Reuters) – Associated British Foods <ABF.L> maintained its full year guidance saying strong profit performances from its Primark fashion chain, grocery, agriculture and ingredients businesses would more than offset a weak outcome from its sugar operation.

The firm said on Monday it expected “progress” in adjusted operating profit and adjusted earnings per share (EPS) in the year to Sept. 15.

Analysts are on average forecasting adjusted operating profit of 1.41 billion pounds and adjusted EPS of 133.3 pence for 2017-18, Reuters data show, up from 1.36 billion pounds and 127.1 pence.

AB Foods said sales at Primark are expected to rise 5.5 percent at constant currency rates as increased selling space offsets a 2 percent fall in like-for-like sales.

Primark performed particularly well in Britain with like-for-like sales seen up 1.5 percent.

The group has warned that AB Sugar’s revenue and profit will be well down on last year due primarily to significantly lower EU prices adversely affecting its UK and Spanish businesses.

(Reporting by James Davey; editing by Costas Pitas and Jason Neely)

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