Volatile pound 'to hit Primark owner's sales by €20m'

Associated British Foods, which owns fashion retailer Primark, has warned the stronger pound will result in a ?20m hit to its sales.
The company also said sales at Primark in the second half of next year "will be sensitive to sterling exchange rate volatility which is likely to arise given a period of intense Brexit negotiations."
After a sharp sell-off against the dollar following Britain's decision to leave the European Union, the pound strengthened to a high of $1.44 in March. Britain is due to leave the European Union in March 2019.ABF, which also owns Twining Ovaltine, Allied Bakeries and Jordans cereal, maintained its full-year guidance saying strong profits from Primark and its grocery, agriculture and ingredient businesses would "more than offset" a fall in EU sugar prices.It had warned that AB Sugar's revenue and profit would be well down on last year amid lower EU prices for sugar."With two thirds of the group's operating profit earned outside the UK, the strengthening of sterling against most of our trading currencies, other than the euro, will result in a loss on translation this year of some €20m," the conglomerate said in a trading update on Monday."Strong profit performances this year from Primark, grocery, agriculture and Ingredients are expected to more than offset the adverse effect of lower EU sugar prices."
Full-year sales at Primark are expected to rise 5.5% on a constant currency basis as the company opened more stores.A heatwave across northern Europe, which kept shoppers away from the high street, sent like-for-like sales down 2%"Early trading of the new autumn/winter range has been encouraging," AB Foods added.
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Store selling space for Primark grew by 900,000 square feet this year, following 15 new store openings that brought the total estate to 360 stores.It included five stores in Germany, four in the UK, two in France and one each in Portugal, Belgium, Spain, Netherlands and the US.
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