0912 GMT - AB Foods' 1Q update shows a fairly weak set of numbers due to a tough discretionary spending backdrop and the British weather, Quilter Cheviot head of equity research Chris Beckett says in a note. The British conglomerate's retailer arm Primark is experiencing a slowdown in both sales and volumes growth. "With a backdrop of weak retail sales across the market, aside from food, the results aren't too bad but they are worse than the market expected and thus this needs to be watched closely to see if there is any rebound," Beckett writes. Added to that, the economic backdrop remains uncertain, particularly given the disruption in the Red Sea, with AB Foods expecting any price impact to be absorbed by Primark margins, he notes. Shares are up 0.3%. (michael.susin@wsj.com)
(END) Dow Jones Newswires
January 23, 2024 04:13 ET (09:13 GMT)
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