Why Are ABF Shares Falling - VRGyani News


Tuesday, March 26, 2024

Why Are ABF Shares Falling

26 March 2024: ABF (Associated British Foods) shares recently dropped due to a profit warning issued by the company itself. Here's a breakdown:

  1. Profit Warning: ABF expects a strong performance for the current financial year, but predicts a lower profit in the next one.
  2. Reason for Lower Profit: Primark, a major subsidiary of ABF, anticipates margin squeeze due to rising costs. While Primark's sales might grow, they won't be able to fully offset the cost increases.
  3. Investor Reaction: The profit warning caused investors to lose confidence, leading to a significant drop in ABF's share price.

While the current year might be positive, the future outlook dampened investor sentiment.

No comments:

Post a Comment

Latest Travel News

Latest Stock Market News

Trending Stocks and Index

Latest Business News

Trending This Week