9th Jul 2015 06:16
LONDON (Alliance News) - Associated British Foods PLC on Thursday said its results for the full year will be harder hit than expected by the weak euro, as revenue in the first 40 weeks was flat at actual rates amid continued tough trading in its sugar business, offset a still-buoyant performance by discount fashion retailer Primark.
The FTSE 100-listed group, which owns Primark and British Sugar and which operates and agriculture and consumer goods arm, said group revenue for the 40 weeks to June 20 was flat year-on-year at actual currency rates and up by 2% in constant currencies, as the weakness of a euro against a wide basket of currencies hit its results.
AB Foods said it expects the weakness of the euro to impact on its full-year results for 2015 more than previously anticipated, with currency translation set to hit its profit by around GBP25 million.
Primark sales rose by 9% in the period, and by 13% in constant currencies, driven by an 8% increase in selling space and high sales densities in stores it has opened in the past year. Like-for-like sales were in line year-on-year, held back by the new stores opened in the Netherlands and Germany in the period.
Trading in its grocery and agriculture businesses also remains on track, but AB Foods said the woes in its British Sugar arm continue to bite. While its 2014/15 campaign produced 1.45 million tonnes of sugar, the new crop for the 2015/16 season, despite progressing well, is expected to see sugar production fall to 1 million due to a reduction in the area under cultivation of 20%.
By Sam Unsted; [email protected]; @SamUAtAlliance
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