AB Foods Group Sales Rose in First 16 Weeks of Fiscal Year 2020

By Adriano Marchese

Associated British Foods PLC (ABF.LN) said Thursday that group sales rose in the first 16 weeks of fiscal 2020, which included the key Christmas period, benefiting from increased Primark sales.

For the period ended Jan. 4, the U.K. food-processing and retail company said group revenue from continuing operations rose 4% ahead of the same period last year at constant currency. Sales from continuing operations at actual exchange rates were 3% ahead.

Primark sales rose 4.5% at constant currency in the period compared with the prior-year period. At actual exchange rates, sales were up 3%. The company said the sales growth was due almost entirely to the increase in selling space. Like-for-like performance also improved, driven by a marked upturn in the eurozone, rising 5.1% at constant currency.

In the U.K., Primark sales were 4% ahead of last year, with a marginal decline in like-for-like sales, but with particularly good trading in November and December, the company said.

Revenue at the company's sugar business rose 7% in the period at constant currency, which represents a 5% increase at actual exchange rates, with European Union sugar prices remaining at higher levels than last year.

Sales for the grocery business were level with last year at both constant currency and actual exchange rates, while margin improved, the company said.

Looking ahead, AB Foods said outlook for the group is unchanged, with progress expected in adjusted earnings per share for the year.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

January 16, 2020 02:40 ET (07:40 GMT)

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