ABF Credits Selective Price Increases, New Stores for Strong Performance

  • Primark owner Associated British Foods raises profit guidance
  • 15% sales surge for Primark
  • Expected adjusted operating profit slightly better than £1.4bn from last year
  • Primark sales to be around £9bn for the full year, a 15% increase compared to last year
  • Like-for-like growth of 9%
  • Q4 sales expected to see a 15% increase with an 8% like-for-like increase
  • UK like-for-like sales up 11% year-on-year, 8% in the rest of Europe
  • Sales growth driven by selective price increases and well received ranges
  • Expanding click and collect trial to 32 more stores in London

Associated British Foods (ABF), the owner of Primark, has increased its profit guidance following better-than-expected results. The company now anticipates an adjusted operating profit slightly better than its previous expectation of ‘moderately ahead’ of last year’s £1.4bn. Primark sales are expected to reach around £9bn for the full year, a 15% increase compared to the previous year with a like-for-like growth of 9%. ABF also forecasts a 15% increase in Q4 sales and an 8% like-for-like increase. In the UK, like-for-like sales are expected to rise by 11% year-on-year, while the rest of Europe sees an 8% increase. The company attributes the sales growth to selective price increases, well-received ranges, and strong new store performance. Primark recently announced plans to expand its click and collect trial to 32 more stores in London.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the company’s financial performance, sales growth, and expansion plans without any digressions or misleading statements.
Noise Level: 4
Noise Justification: The article provides relevant information about the company’s financial performance and sales growth, but does not delve into any deeper analysis or explore the consequences of these results on various stakeholders or the industry as a whole.
Financial Relevance: Yes
Financial Markets Impacted: Associated British Foods (ABF) stock price and Primark’s performance affects the retail sector and may impact related companies.
Financial Rating Justification: The article discusses improved financial results and profit guidance for Associated British Foods, which owns Primark, a major retailer. This information is relevant to investors and can affect the company’s stock price as well as other retailers in the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retailsector.co.uk