0722 GMT - AB Foods delivered a better-than-expected first-half performance, with Primark, grocery and ingredients operating margins ahead of expectations, RBC Capital Markets analysts Richard Chamberlain and Manjari Dhar write in a note. The conglomerate's 1H sales were in line with RBC's estimate, while adjusted operating profit of GBP951 million beat RBC's expectations of GBP823 million. Adjusted pretax profit was also ahead of views at GBP911 million compared withGBP818 million, and the dividend surprised at 20.7 pence versus RBC's forecast of 15.0 pence. The analysts expect further healthy sales trends at fashion retailer Primark in the short term and continuing recovery for store-based retailing, with a strong margin improvement ahead. Shares are up 7.2%, and 31% on a 12-month basis. (michael.susin@wsj.com)
(END) Dow Jones Newswires
April 23, 2024 03:22 ET (07:22 GMT)
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