AB Foods expects moderate increase in full-year profit

AB Foods (LSE: ABF) experienced a slight dip in its shares on Monday morning as the company revealed its revised outlook for the full year. The stock was down 0.5% at 1,943.18 pence at the open.

AB Foods now expects its adjusted operating profit for the year to be ‘moderately’ ahead of last year, thanks to a robust performance in the third quarter.

In the 12-week period ending May 27, the owner of Primark reported a group revenue of £4.7 million, marking a notable 16% increase compared to the previous year at constant currency rates. AB Foods attributed this growth to strong double-digit percentage revenue expansion across all its businesses, except for Agriculture, which witnessed a more modest 4% year-on-year growth.

AB Foods highlighted that its food businesses have continued to exhibit strong trading performance. The company achieved robust sales growth at constant currency rates, which was largely driven by the ‘necessary pricing actions’ implemented earlier in the year to counteract rising costs.

Regarding its retail division, AB Foods confirmed that Primark has maintained its performance in line with expectations. The popular clothing retailer achieved a solid 13% sales growth, primarily supported by higher average selling prices.