Shares in Associated British Foods (LON:ABF) fell over 5 percent on Monday, despite its Primark business showing strong results for the full year to September.
The group said it expected to report good growth in adjusted operating profit and earnings per share for the year, with an improvement in the group’s previous expectation for full year underlying operating profit.
It confirmed that performance at Primark was “well ahead of last year”, after the chain enjoyed good trading in the run-up to Easter. Like-for-like sales, excluding new store openings, rose 1 percent over the full year.
Primark’s full-year operating profit margin was forecast to be better than the first half’s 10 percent, ahead of previous guidance. AB Foods expects to end the year with net cash of £650 million, compared to net debt of £315 million pounds the previous year.
Despite the strong results, shares in AB Foods are currently trading down 5.21 percent at 3,208.00 (1006GMT).
