Associated British Foods reported a 2% revenue decline and a 10% drop in adjusted operating profit, primarily due to its struggling Sugar business, which is expected to incur a significant loss. Primark also faced challenges with a 6% decrease in like-for-like sales in the UK and Ireland. Following the resignation of Primark's CEO, concerns about the brand's culture emerged. However, there's potential for growth overseas, and the company remains committed to improving margins in its retail sector to counterbalance rising costs.
AB Foods has reported disappointing results with a 2% decline in revenue, attributed to significant losses in its Sugar business and flat growth in Primark.
The outlook remains grim for the Sugar segment, now estimated to record a £40 million loss, highlighting challenges from European sugar prices.
Primark's performance in the UK and Ireland has been subpar, with a 6% drop in like-for-like sales, leading to market share loss.
While there are growth opportunities overseas and improved margins in retail, urgent actions are needed to enhance Primarkâs sales and address cost pressures.
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