Associated British Foods (ABF), which operates the Primark retailer and owns brands such as Twinings and Ryvita, has issued a statement saying that trading remains 'in line with expectations' ahead of the close of its H1 results period on 28 February.
'Underlying trading remains in line with expectations and, as noted in our last trading update in January, we continue to expect a marginal decline in adjusted earnings per share for the group for the full year,' ABF said in the statement.
'As previously indicated, the adjusted operating profit for the first half is expected to be lower than last year.'
Sales at Primark are expected to be 16% ahead of last year, driven by an 11% increase in retail selling space, it added.
Profitability in its sugar business however, is expected to be lower.
Commenting, Darren Shirley of Shore Capital Stockbrokers said that ABF "deserves a premium rating due to the medium to long-term potential from the outstanding Primark business, plus a credible long-term growth strategy predicated upon well-invested operations with generally leading and so valuable market positions."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
