AB Foods 3Q Revenue Jumped as Primark Stores Reopened -- Update
July 01 2021 - 2:17AM
Dow Jones News
By Matteo Castia
--Associated British Foods said third-quarter revenue jumped on
the back of strong retail sales
--Primark's sales in the period more than trebled to GBP1.61
billion
--However, full-year adjusted EPS is expected to be below the
previous year's level
Associated British Foods PLC said Thursday that revenue in the
third quarter of fiscal 2021 increased significantly, driven by
store reopenings at its Primark retail business, but that it still
expects full-year adjusted earnings per share to fall.
The British conglomerate said revenue in the 16 weeks ended June
19 rose 47% year-on-year to 3.65 billion pounds ($5.05 billion).
This was driven by more-than-trebled Primark sales in the period
amid the reopening of stores in the U.K.
On a like-for-like basis, third-quarter sales at Primark were 3%
above the same period two years earlier.
"Sales in the reopened stores were ahead of expectation in all
markets, a number of new sales records were set and the
like-for-like performance was much improved on earlier periods
during this pandemic reflecting an increase in both confidence and
willingness to spend by our customers," AB Foods said.
On a 40-week basis, the company's revenue was down 2% on the
year to GBP9.96 billion.
The FTSE 100 company said it expects full-year adjusted
operating profit to rise at its sugar business and to fall at its
grocery division. Meanwhile, Primark's full-year sales and adjusted
operating profit are forecast to be in line with the prior year, it
said.
"We expect these improvements in our outlook to result in
adjusted earnings per share for the group reaching a level below
last year, only reflecting the charge for repayment of the job
retention scheme monies and the higher year-on-year adjusted
effective tax rate," AB Foods said.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
July 01, 2021 03:03 ET (07:03 GMT)
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