European sales have been a highlight. Eurozone Primark saw sales jump 5.1% coupled with like for like growth. US Primark also recorded like for like sales growth in the quarter. Overseas is proving to be a strong point for Primark. Given Primark’s lack of online presence, the overseas business is compensating for the tough conditions of the UK market.
Strong growth was also experienced at AB Sugar as EU sugar prices remained healthy. Revenue jumped 7%, which combined with cost reductions means full year profits are set to improve.
Overall there was a lot to like in these results. Primark continues to perform well compared to rivals despite challenging conditions, amid weak consumer confidence and low retail sales in the sector, and despite the fact that the business has no online presence. Whilst a sugar rush from AB Sugar helped push AB Foods to the top of the FTSE.
AB Foods has jumped 3% in early trade on Thursday. It trades firmly above the 50, 100 and 200 sma on a bullish chart.
Resistance can be seen at 2680p (Jan10 high) before the all time high of 2704p (7th Jan). Immediate support can be found on the trendline in the region of 2575p and then yesterday’s low 2547p.