Primark Q1 likeforlike sales up 2.1, total sales up 7.9
Does not expect significant disruption from Red Sea situation
Group still expects meaningful progress in 202324 profit
Shares up 1.3

LONDON, Jan 23 Reuters Associated British Foods said underlying sales growth slowed at its Primark clothing business in the Christmas quarter, hurt by unseasonal warm weather at the start of the period.

The group also said on Tuesday it was monitoring the situation in the Red Sea but does not expect any significant disruption to its supply chain for now.

Primark39;s likeforlike sales rose 2.1 in the 16 weeks to Jan. 6, its fiscal first quarter, a slowdown from growth of 8 in the previous quarter. Primark39;s total sales were up 7.9.

It was a tricky period, Finance Director Eoin Tonge told Reuters. It started off very slowly with the weather and that impacted certain countries harder than others, particularly Spain where it was warmer for longer.

However, trading at Christmas was strong, especially in the UK, Tonge said, adding that the group had flagged a slowdown in underlying sales growth.

AB Foods said it was more confident Primark39;s adjusted operating profit margin would recover to over 10 in its 202324 year, driven by a further improvement in the cost of the products it buys.

This should insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they arise, it said.

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