Related British food (LSE: ABF) There were the worst results FTSE 100 Actions today (September 10) after the group published a commercial update for the second six months of this budget year, which will end on September 13 (25 H2).

Although the general director of the group was “content“In the case of the results, he said that the market is”defiant“And”characterized by consumer caution, global uncertainty and inflation“.

The group has two separate business units. One includes Primark, a inexpensive fashion seller, and the other covers his grocery store, ingredients and Cukrowskie companies.

Primark trade in Great Britain was described as “improved“, And”Strong sales growth“Has been reported to the US. On the other hand, Europe is said to be”softer“.

The group’s food department acted as expected.

Reading this, it is hard to understand why the price of the action was completed. But a closer look reveals a number of problems that seem to frighten investors.

Bitter taste

The most disturbing is his sugar business, which he covers Silver spoon.

In the second half of the year, sales and profitability dropped significantly in Great Britain and Spain due to lower European sugar prices and higher beets. The result is that the operational profit corrected by all year will probably be close to profitability (removing the impact of a earnest closing of the plant), and sales will be 10% lower.

Restructuring caused a fee for an impairment of $ 200 million, including 50 million GBP cash costs, which will be spread over 2025 and 2026.

And the result is a bit gloomy. The group secured lower beet prices through long -term contracts, but sugar prices remain lower than expected.

Cheap, but not so cheerful

As for Primark, similar sales in H2 25 in the amount of almost at the end will be 2% lower compared to the same period in 2024. Still, in Great Britain and Ireland, it was possible to improve its market share from 6.6% to 6.8%.

In 2024, the retailer accounts for 47.2% of group revenues and contributed to the corrected operational profit.

When it comes to embracing the Internet, Primark lags behind most of his rivals. However, his “click and collect” service now operates in all 187 British stores.

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

Final thoughts

It was turbulent 12 months for the price of the group’s action. Before today’s fall, the actions changed their hands slightly more than in September 2024. However, the shares are now 20% below the 52-week maximum.

One of the advantages of this is that recent investors can enjoy the capacity of 4.6%. Of course, there is no guarantee when it comes to dividends.

Despite the response to a trade update, Shore Capital remains positive. He said: “When the stars equalize in ABF troops, it is the most convincing entity from earnings, making cash and return. ”

Unfortunately, it is not clear to me when the stars go to more favorable positions. On this basis, I would prefer to wait until the year -round results of the group are announced on November 4 before restoring the investment case again.