Associated British Foods (LON:ABF) published an update stating that total sales for the 40 weeks to 23rd June were up by 2% relative to the same period of last year as poor sugar sales dragged down a stronger performance at the company’s Primark subsidiary. Excluding sugar, sales rose by 5% during the period.
Management adjusted full year guidance for the sugar division, as lower EU sugar prices would have a direct impact on the profits of that arm, but this would be counterbalanced by a better than previously expected performance by Primark. In particular, Primark has outperformed expectations in Italy and markdowns have been less extensive than had been forecast. Shares in Associated British Foods dropped by 4.42% to 2,597p (as at 14:30 BST).