LONDON (dpa-AFX) - Associated British Foods PLC (ASBFY.PK, ABF.L) reported Thursday that its 16-week Group revenue dropped 2.2 percent from last year to 6.732 billion pounds with weak results in all segments. However, revenues edged up 0.5 percent at constant currency basis.
Looking ahead, Primark is now targeting low-single digit sales growth in 2025. Previously, the retail division was targeting mid-single digit sales growth in 2025.
'Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital and brand to drive underlying growth. We continue to expect Primark's adjusted operating profit margin to remain broadly in line with last year's level, as gross margins have continued to improve and good cost management offsets inflation and the step-up in investment,' the company stated.
In its trading update for the 16 weeks to January 4, retail sales from Primark fell 0.4 percent year-over-year to 3.36 billion pounds, but constant currency sales grew 2 percent.
Sales in the UK and Ireland, which accounted for approximately 45 percent of sales, declined in the period, with growth in like-for-like sales over the key Christmas period more than offset by weaker autumn trading in a challenging retail environment.
Retail sales improved across its key growth markets, Spain, Portugal, France, Italy, Central and Eastern Europe and the US.
Grocery revenue dropped 1.8 percent to 1.39 billion pounds on a reported basis, but gained 0.8 percent at constant rates, mainly reflecting good growth in international brand businesses driven by Twinings and Ovaltine.
At constant currency rates, Ingredients revenue grew 4 percent, while Sugar sales declined 2 percent and Agriculture revenue dropped 4 percent.
The company is scheduled to announce interim results for the 24 weeks to March 1 on April 29.
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