Без кейворда
Multinational corporation AB Foods is facing sales difficulties. The company's stock price plummeted by 12% in a single day.
The double impact of Primark's large discount clearance and weak demand for food ingredients in the US market will result in a decline in the company's annual profit.
As the core retail sector of AB Foods, Primark's performance decline has become an important driving force for profit reduction. Data shows that Primark's sales decreased by 2.7% year-on-year in the 16 weeks ending January 3, lower than market expectations.
Despite the growth in the UK domestic market, weak consumption in other regions of Europe and the volatile retail environment in the US have completely offset this growth, leading to a sustained decline in brand foot traffic and market confidence.
To alleviate inventory pressure, Primark had to adopt a large-scale discount promotion strategy, which directly squeezed the already limited profit margin and became a key factor dragging down the group's performance.
The weak demand in the US market has added insult to injury to AB Foods' food business. The anti-immigration raid supported by US President Trump has caused widespread anxiety among the Hispanic community, with many reducing their spending and turning to online shopping, directly leading to a sharp decline in AB Foods' sales of food oils, baking ingredients and other products.
This profit warning has broken AB Foods' previous expectations for 2026 earnings growth. The company currently expects the group's adjusted operating profit and earnings per share to be lower than last year's levels.
The company maintained its original expectation for the sugar and agriculture sector, only lowering its performance forecast for the grocery and ingredient businesses.
As early as November last year, after the food business saw a decline in annual profits, the company began considering divesting its Primark business. This performance pressure may further drive this strategic adjustment.