By Jana Weigand
LONDON--Associated British Foods PLC (ABF.LN), a food and retail
company, Thursday reported bumper Christmas sales at budget
clothing chain Primark but said trading at its sugar business was
weaker than expected.
The company said overall group revenue for the 16 weeks ended
Jan. 4 was in line with last year, without giving figures, and 1%
higher at constant currency.
Sales at Primark were 12% ahead at constant currency and, with
the benefit of a stronger euro, 14% ahead at actual rates. This was
driven by an 8% increase in selling space, strong like-for-like
growth and higher sales from new stores.
AB Foods added that Christmas trading was "excellent" with very
strong like-for-like growth. Operating profit margin was higher
than in the same period last year, reflecting the Christmas
trading, and was better than expected.
Sugar revenue was 27% below last year at constant currency, and
28% lower at actual rates as the strength of the euro was broadly
offset by the weakness of the South African rand. The company said
that lower sugar prices will result, as previously announced,
leading to a substantial reduction in profit from its sugar
businesses this year.
Agriculture revenue was level with last year at both constant
currency and actual rates, while grocery revenue at constant
currency was 2% ahead of last year but at actual rates was 1%
below, largely as a result of a weaker Australian dollar.
Ingredients revenue at constant currency was 3% ahead of last year
at constant currency but 2% lower at actual rates.
Net debt at Jan. 4 was 392 million pounds ($643.3 million) lower
than last year end at GBP412m. The company left its full-year
earnings' expectations unchanged.
Shares closed Wednesday at 2,696.0 pence, valuing the company at
GBP21.3 billion.
-Write to Jana Weigand at jana.weigand@wsj.com
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