Trending tickers: latest investor updates on AB Foods, AstraZeneca, Amazon, Deutsche Bank and Porsche
Associated British Foods, the owner of Primark, reported pretax profit and revenue for the first half below expectations due to challenges in its sugar business.
The FTSE 100 (^FTSE) conglomerate said on Tuesday that pretax profit for the 24 weeks to March 1 fell to £692m, down 21% at current exchange rates compared with the same period last year. The figure came in well below analysts' forecasts of £828m.
The group's sugar business posted an operating loss of £16m, dragged down by persistently low European sugar prices and underperformance at its UK-based bioethanol arm, Vivergo.
Chief executive George Weston expressed disappointment in the division's performance.
"These results reflect a robust performance in four of our five divisions," he said.
'I am frustrated with the results in our sugar business, but we are clear on what needs to be done by way of operational and regulatory solutions to improve financial performance.
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'Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark's profit and margin delivery was strong and our low-cost operating model is working well. '
The company said it expects trading conditions for Primark in the UK to remain challenging in the second half of 2025, although recent trends suggest some stabilisation.
Shares in AstraZeneca edged 4% lower in London trading as investors overlooked stronger-than-expected earnings and a robust performance in oncology, focusing instead on the pharmaceutical giant's revenue miss in the first quarter.
The Anglo-Swedish drugmaker reported total revenue of $13.59bn for the three months to March 31, falling short of analysts' forecasts. However, core earnings per share — which exclude certain costs and one-off items — rose 21% to $2.49, comfortably beating expectations. Reported earnings per share increased 34% to $1.88.
Despite the mixed results, the company reiterated its full-year guidance, maintaining expectations for high single-digit percentage growth in total revenue and a low double-digit percentage rise in core earnings per share at constant exchange rates.
Growth was recorded across all major geographic markets, though analysts described performance in China as "soft", dampening the broader results.
Oncology remained the key engine of growth for AstraZeneca, with the group highlighting five positive phase III trial readouts since its previous quarterly update.
Chief executive Pascal Soriot said AstraZeneca had entered an "unprecedented catalyst-rich period" and pointed to further investment plans in US manufacturing and research.
Amazon shares were trading lower in pre-market dealings following reports that the e-commerce group is demanding aggressive price cuts from suppliers as it seeks to shield its margins from mounting costs tied to the Trump-era trade war.
According to the Financial Times, Amazon has asked for low double-digit discounts on products ranging from homeware to consumer electronics, according to three vendor consultants who represent multiple brands and suppliers.
'Amazon is the 800-pound gorilla in the room,' Scott Miller, a consultant and former Amazon vendor manager told the FT. 'Brands have grown dependent on the platform and have little choice.'
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The retail giant is not alone in its approach. Rivals including Walmart (WMT) and Costco (COST) have also leaned on suppliers in recent months to blunt the financial blow of higher import tariffs. Analysts at Goldman Sachs (GS) estimate that the levies could reduce Amazon's operating profit by between $5bn and $10bn this year — a hit of 6% to 12% — depending on how trade tensions unfold.
In a statement, Amazon said: 'We're working with our broad, varied range of valued selling partners in our store to support them in adapting to the developing environment while maintaining low prices for customers.'
Shares in Deutsche Bank climbed 4% after Germany's largest lender reported a stronger-than-expected first-quarter profit, buoyed by a robust performance in its investment banking division despite rising credit provisions linked to economic uncertainty and US trade policy.
Net profit attributable to shareholders rose 39% year-on-year to €1.8bn (£1.5bn/$2.019bn), surpassing analyst forecasts of around €1.64bn, according to a Reuters poll. The figure marks a rebound from the €106m profit recorded in the fourth quarter of 2024.
Revenue for the three months to March reached €8.5bn, a 10% increase from the same period last year and well ahead of the €7.2bn generated in the previous quarter.
While the bank raised its credit provisions amid continued turbulence in Europe's largest economy — in part due to ongoing trade tensions with the US — investors focused on the strength of its investment banking franchise, which helped lift overall earnings.
In a statement, Deutsche Bank CEO Christian Sewing said the results 'put us on track for delivery on all our 2025 targets' and marked 'our best quarterly profit for 14 years.'
Porsche slashed its full-year outlook after reporting a sharp fall in first-quarter profits, citing a toxic mix of waning demand in China, rising supply chain costs and disruptive US tariffs that are shaking the global car industry.
The company said its profit after tax plunged 44% to €518m and earnings per share slid 44.5% to €0.56. Furthermore, the revenue outlook for 2025 was cut from the €39bn-€40bn range to €37bn-€38bn and return on sales guidance was lowered from 10%-12% to 6.5%-8.5%.
'The introduction of US import tariffs leads to negative impacts for the months of April and May 2025 which are included in the adjusted forecast. However, the adjusted forecast does not take into account further effects of the introduction of US import tariffs,' the company said in a statement.
'Currently it is not yet possible to make a reliable assessment of the effects for the financial year,' it added.
The tariffs, part of a wider escalation in global trade tensions, are expected to increase the price of imported vehicles by thousands of dollars, weakening demand in a market already grappling with a slowing shift to electric vehicles.
Porsche is also contending with softening demand in its largest market, China, particularly for its all-electric models.
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