British -related foods (LSE: ABF) was the worst performance FTSE 100 The stocks today (September 10) after the group issued a commercial update for a period of six months of its current financial year, which is scheduled to end on September 13 (H2 25).

Although the group’s CEO was “pleased“With the performance, he said that the market was”challengeAnd “and”It is characterized by the caution of the consumer, the global uncertainty and inflation“.

The group has two distinct commercial units. One of them includes Primark and low -cost retail and the other includes a grocery store, components and companies of sugar.

Premark’s trading in the United Kingdom has been described as “to improveAnd “and”Strong sales growthThe United States was reported. In contrast, Europe was said to be “EuropeSoftness“.

Performing the food department in the group in line with expectations.

When reading this, it is difficult to understand the reason for the arrow price. But a closer look reveals a number of problems that seem to have fallen from investors.

Bitter taste

The most anxious, it is sugar, which includes Silver spoon.

During the second half of the year, sales and profitability decreased significantly in the United Kingdom and Spain due to the low European sugar prices and the high cost of beets. The result is that the amended operating profit for the entire year is likely to be close to a tie (removing the main factory closure effect) and sales are expected to be 10 % less.

The restructuring resulted in a decrease in value of 200 million pounds, including 50 million pounds of cash costs that will be distributed over the course of 2025 and 2026.

The result is somewhat dark. The group got lower beet prices through long -term contracts, but sugar prices are still less than expected.

Cheap but not delightful

As for Primark, it is expected that similar sales in H2 25 are approximately 2 % less compared to the same period in 2024. However, in the United Kingdom and Ireland, it managed to improve its market share from 6.6 % to 6.8 %.

In 2024, the retail seller accounted for 47.2 % of the group’s revenues and contributed 55.6 % to the modified operating profit.

When it comes to adopting the Internet, Primark failed to do most of its competitors. However, the “click and assembly” service is now working in all 187 stores.

The group also plans to expand in the Middle East with a franchise partner. Its first store is scheduled in Kuwait in October.

Final ideas

It was 12 months turbulent of the group share price. Before stumbling today, the arrow changed its hands more marginal than it was in September 2024. However, the arrows are now less than 52 weeks.

One advantage is that new investors can have a 4.6 % return. Of course, there are no guarantees when it comes to profit distributions.

Despite the reaction to the trading update, the Shore Capital is still positive. He said: “When the stars are in line with ABF sections, it is a more convincing entity than profits and cash generation and returning views”

Unfortunately, it is not clear to me when the stars will move to more appropriate locations. On this basis, I prefer to wait until the entire group results are announced on November 4 before reconsidering the investment case.