DAVY VIEW

Key takeaways from Associated British Foods’ (ABF) Q3 statement include: (1) continued like-for-like (LFL) momentum at Primark through the period – with the quarterly exit rate at 95% of pre-COVID; (2) growth across the Food businesses reflecting the phasing of pricing; and (3) the reiteration of full-year guidance. On recent trading, management noted that it has not seen any material changes in consumer behaviour. The launch of the Click & Collect trial in the UK leverages earlier technology investments (Oracle, EPOS, new website et al) while evolving the Primark offering towards an omni-channel model. Execution through 2023 will be an important watchpoint for the equity. We are hosting a site visit to Primark’s flagship store in Dublin on June 28th.