US stock markets were closed for Labor Day weekend on Monday, but there were movements in London as Associated British Foods PLC (ABF) made marginal share gains (+0.54%) with revenue beats for fiscal Q4.
The British conglomerate, which owns the popular Primark clothing business, said that cumulative sales should hit £2bn for the full fiscal year and noted that strong trade had been recorded since the reopening of flagship stores in late spring.
AB Foods believes that Primark’s FY-adjusted operating profit will surpass the high end of guidance that it previously forecast, which was £300m to £350m.
Analysts at Numis Securities were already bullish on Primark in the short term after stating that it would be able to support profitability near the top end of the company’s forecasts.
Numis Securities also expects a year-on-year rise for AB Foods’ grocery business, even though AB Sports Nutrition and Westmill had been challenged by a drop-off in activity in the food service and sports sectors.
It added: “Silver Spoon, Jordans, Dorset Cereals, Ryvita and AB World Foods all benefited from significant increases in consumer demand in the second half.”
ABF shares rose sharply just before 10am BST on the London Stock Exchange, but a steady decline thereafter meant that gains stood at 0.54% at close for a 2038.00 GBX share price.
Elsewhere in Europe, tech stocks were up across the board, a trend that stood in contrast to the losses logged in the US late last week.
German-based software enterprise SAP climbed 2.98% to €136.82, while pharmaceutical company AstraZeneca rose 3.89% to 8280.00 GBX.
The US stock market will reopen on Tuesday with several companies, including Slack (WORK) and Peloton (PTON), set to report financial results.
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