Q1 revenue +4% yoy, reflecting overall sales growth from both Primark & the sugar business.
European sales have been a highlight. Eurozone Primark saw sales jump 5.1% coupled with like for like growth. US Primark also recorded like for like sales growth in the quarter. Overseas is proving to be a strong point for Primark. Given Primark’s lack of online presence, the overseas business is compensating for the tough conditions of the UK market.
Strong growth was also experienced at AB Sugar as EU sugar prices remained healthy. Revenue jumped 7%, which combined with cost reductions means full year profits are set to improve.
Overall there was a lot to like in these results. Primark continues to perform well compared to rivals despite challenging conditions, amid weak consumer confidence and low retail sales in the sector, and despite the fact that the business has no online presence. Whilst a sugar rush from AB Sugar helped push AB Foods to the top of the FTSE.
AB Foods has jumped 3% in early trade on Thursday. It trades firmly above the 50, 100 and 200 sma on a bullish chart.
Resistance can be seen at 2680p (Jan10 high) before the all time high of 2704p (7th Jan). Immediate support can be found on the trendline in the region of 2575p and then yesterday’s low 2547p.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.