AB Foods Slides, Whitbread Rises, D’Ieteren Gains

0:00brought to you by Apple Card. Apply for Apple Card and earn daily cash back on back-to-school purchases, including 3% back on everything at Apple. Subject to credit approval, Apple Card is issued by Goldman Sachs Bank USA Salt Lake City Branch, terms and more at Applecard.com. Bloomberg Audio Studios Podcasts, radio, news. The Stock Movers Report, your round-up of companies making moves in the stock market, harnessing the power of Bloomberg data. Time to take a look at some of the stocks on the move today in Europe. I'm Lizzie Verden with Stephen Carroll, and we're joined by our Bloomberg reporter Chloe Mele. I want to start with Primark. The Primark owner, AB Foods Infocus, a guidance cut. But is that really the reason why the shares are so down this morning? Is it more to do with the fact that they're going to start selling online and split off Primark? Yeah, it's a little bit of everything this morning, but overall not a good day with, as you mentioned, quite a lot of weakness in the stock. Of course, it's in the process, as you mentioned,

1:00of de-merging the retail and the food businesses. So essentially making Primark a standalone entity. So that's in process that's going to happen by the end of 2027. Yeah, I thought that would happen. Yeah, I know. But today, really flagged weaknesses across almost every part of the business. So if we start with Primark, sales are expected to fall again in the final quarter. And it also said that, as you mentioned, you would start doing those home deliveries, so quite a big shift for a company that for very long had argued that it did not need an online business. And then for the food divisions, things are also quite tough with a guidance cut for the sugar division and the grocery division as well. So the sugar business in particular is really weak spot. And it's expecting the operating loss for this year to be at the higher end of the expected range. And then the loss should be even deeper next year. All of that is due to lower sugar prices and higher energy costs really weighing

2:00on that division. And then the grocery division is also in quite a tough spot at the moment. Apparently, that was due primarily to the heat wave meaning less demand for tea. So overall, just quite a lot of weakness across all of those divisions and this de-merge are also on the horizon for AB foods and all of that weighing on those stock. Okay, so that's for AB foods. Wit bread though, the owners of Premier Inn seeing a positive cash list ahead of results. How's the more? Yeah, so they get a positive catalyst what at city ahead of the results that are due on the 15th of October. So analysts are expecting a good performance at those results and they're saying that the valuation is quite attractive at the moment. The next set of results is really going to be kind of showing potentially how well the turnaround is working for Wit bread. So it had announced earlier this year that it would sell a bunch of properties and rent them instead and then also transform some of its unprofitable restaurants

3:01into restaurants that are integrated within its Premier Inn hotels and also announced a cut to 13% of its workforce. So the idea with all of those changes was to raise a cash to return about two billion pounds to shareholders over the next five to six years and also become really a pure play hotel business. And so the latest results that we had in June were quite positive. Showing that revenue was starting to grow. Maybe seen as an indication that some of this was starting to pay off. And what's it Jan Lysl saying today is that we might see even more of those benefits start to come through when we get those results next. In Chloe Stephen Carle in Brussels is very excited because the third stock on your list today is from Belgium indeed. Yes, it's de Tern. I think that's how you pronounce it. It makes car parts and glass replacement services and it rising very strongly today after really strong performance at the Carglass company Belron. So that's a name that might not ring a bell, but the name that it operates under might.

4:03So it operates as Carglass in Europe, a safe light in the US and auto glass in the UK. And this is quite interesting given that Belron is considering a potential IPO. That's a listing that could value the firm at more than 30 billion euros. So the rest of this business editor and is a little bit weaker a lot of the car parts side of the business is facing competition for market share. But the glass replacement service side of things is doing very well. And unless I'm saying that this strong performance in this division in the context of this potential IPO is really overshadowing and everything else. And so we're seeing a really quite solid performance at this morning for the shares.

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