Primark owner ABF warns of profit drop as gas costs hit sugar arm

Yahoo Finance UK··Read original
2▲0 ▼2Impact / 5
Summary · why it matters

Associated British Foods expects a drop in profits this year and warned that higher gas prices will further deteriorate profits in its sugar arm next year. The group, which is preparing to spin off Primark by the end of next year, reported a 3% rise in group revenues to £5.3 billion for the quarter to June 20, with Primark sales up 4% to £2.92 billion. However, like-for-like sales at Primark dipped 2.2%, and sugar revenues fell 4% due to lower European selling prices. Chief executive George Weston said the Middle East conflict has increased gas price expectations, impacting the European profit outlook for sugar, while the full-year outlook for the rest of the group remains unchanged.

Impact on assets 2

Synthetic Biology (non-pharma)▼
Others▼

Off-coverage companies 1

Primark Limitedi
Private± MixedDemandrelevance

Primark sales up 4% but like-for-like sales dipped 2.2%; mixed demand signal.