By Ian Walker
LONDON--Associated British Foods PLC (ABF.LN) Friday warned that
the recent warm weather has hit sales of its discount retailer
Primark, and it continues to expect a 'marginal' decline in
adjusted operating profit for the company, with limited opportunity
to grow adjusted earnings per share.
Despite this, AB Foods said Primark's sales for the first two
months of fiscal 2015 were 10% ahead of the same period a year
earlier, as it has expanded selling space. It added that its annual
forecast for the unit was unchanged, as it had budgeted for a
higher number of markdowns.
In his address to shareholders at the company's annual general
meeting, Chairman Charles Sinclair confirmed that the continued
fall in European Union sugar prices and volatility in the world
sugar price, would cut profits at AB Sugar.
"With the strength of the group's balance sheet and strong cash
generation, we have every reason to be confident of further
progress for the group thereafter," Mr. Sinclair said.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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