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Jul 1 2026, 08:20 IST/BST
Associated British Foods
Q3 trading update: Sugar profit warning, Primark guidance held
- Sectors : Foods
- Companies : Associated British Foods
DAVY VIEW
Primark delivered a like-for-like (LFL) decline of 2.2% (Visible Alpha (VA) consensus: -3.7%), with the drag led by Continental Europe and UK/Ireland broadly flat (H1: +1.3%). Management has maintained its FY26 Primark guidance, holding margin at c.10% despite impacts from the Middle East conflict. On Sugar, management now expects the knock-on impacts of the conflict to weigh on procurement costs, guiding to a loss of £25-60m in FY26 (VA consensus: -£22.5m) and a >£60m loss in FY27 (VA consensus: flat). As such, we see downside to our current forecasts.
