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Budget The Primark fashion chain is on track to earn annual profits higher, because rigorous inventory management and markdowns are beginning to bear fruit.
Associated British Foods said in a commercial update that it expects Primark's bottom line to increase due to higher operating margins
"Stock has been tightly managed and markdowns, although higher than the very low level reached last year.Primark's profits will now be higher than expected, "said AB Foods
who also expects to feel the benefits of a lower US dollar on its purchases.
this is not enough to offset the decline in profits of its sugar division, which is hit by the EU's low prices, forcing AB Foods to hold its forecasts for the whole of the year. year.
The group recorded a 2% increase The turnover for the quarter went from 40 weeks to June 23, to 3% after currency effects.
The third quarter business figure increased 4%.
Increased% of Primark's revenues, at real exchange rates, thanks to a larger commercial footprint. [19659004Ilagagné400000piedscarriedoutdoorthreemetrialrimesandwascoveredinnewnewstoresinMunichenGermanyMetzenFranceAnnversinBelgiumValenceenSpainTilburgsNetherlandsBurnleyauLancashireandWestfieldinLondon
However, launches of new stores in Toulouse in France and in Ingolstadt in Germany have been delayed and are expected to continue during the next financial year.
AB Food plans to add an additional 100,000 square feet to sell space by the end of the year, with a new store in Brooklyn and the relocation of its Islazul Madrid site into a bigger store.
Primark has been fighting against the climatic slump in recent months. an unusually warm October and winter conditions brought by the East Beast in the spring.
AB Foods reported in April that earnings growth would increase in the second half of the year
year To date, AB Sugar saw its turnover drop by 17% in the third quarter.
AB Foods stated that it was "entirely the result of significantly lower European prices that affected our British and Spanish businesses". 19659004] Stripped of its sugar division, the like-for-like sales figure jumped 6% at constant exchange rates and 5% at real exchange rates
EU sugar prices have fallen due to a fall in world prices, as a glut of supply following a very strong production in the EU last year.
"For our next fiscal year, this level of EU sugar prices would represent a substantial reduction from those achieved this year". "As a result, our sales and profit forecasts at AB Sugar are lower than planned for the current year."
The business division's business turnover remains solid "up 12%
AB Foods shares were down 3.7% in the morning [19659027] Press Association
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