Associated British Foods (LSE: ABF) 1H19 Update: German Weakness Drags Down Eurozone Growth and Prompts Marketing Investment

Executive Summary

• Associated British Foods (ABF) issued a pre-close trading update for 1H19, which ends March 2, 2019. This report focuses on Primark, ABF’s retail division.
• First-half comparable sales at Primark are expected to be down 2% and total sales are expected to be up 4% both as reported and at constant currency; both figures are broadly in line with consensus.
• UK comparable sales are expected to be flat year over year. Eurozone comps are expected to be down 3%, with Germany continuing to prove weak.