Market News & Analysis

Top Story

AB Foods Jumps After Q1 Impresses

Q1 revenue +4% yoy, reflecting overall sales growth from both Primark & the sugar business.

Not even Primark’s UK business has been able to outsmart estimated weaker footfall numbers on the UK high Street this Christmas period. Primark’s UK businesses saw like for like sales fall marginally over the Christmas period. However, the fall was much less than that of rivals, meaning Primark grabbed a larger share of the UK clothing market. Thanks to new space overall sales were 4.5% ahead of last year.

Primark Abroad
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.

Sugar Rush
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.

Looking ahead, the outlook for the UK consumer still looks shaky, despite the firmer political landscape following December’s elections. UK GDP contracted -0.3% in November, raising fears that the UK could be heading towards a recession early next year. Should consumer confidence dip further, Primark could become more reliant on its overseas operations. 

Chart thoughts
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.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.