Home news AB Foods lifted by Primark sales boost

AB Foods lifted by Primark sales boost


Shares in Associated British Foods rose 3% after the company reported a better-than-expected performance from its Primark clothing chain.AB Foods said third-quarter revenues were up 13% when exchange rate movements were stripped out, and 20% higher at actual exchange rates.The firm said its results were better than forecast because of “stronger profit delivery from Primark”.In the UK, Primark’s total sales for the year to date are up 9%.AB Foods’ shares were up 6% in early trade before slipping back slightly, but by midday they were still the biggest riser on the FTSE 100. However, the index itself was down 44.32 points at 7,323.28.Shares in consumer health giant Reckitt Benckiser fell 2% after the company cut its revenue growth forecast as a result of last week’s cyber-attack.Reckitt – whose products include Nurofen and Cillit Bang – said like-for-like revenue growth in the second quarter of the year would fall by 2% as a result of the disruption to manufacturing caused by the attack.In addition, it said continued production difficulties in some factories meant that “we also expect to lose some further revenue permanently”.Reckitt said it now expected like-for-like net revenue growth of 2% for the full year, down from its previous estimate of 3%.On the currency markets, the pound rose 0.1% against the dollar to $1.2950 and was unchanged against the euro at 1.1389 euros.
Source: BBC