Primark owner Associated British Foods has raised its financial guidance for full year 2022-23 after a strong first half performance.
The group, which also owns major sugar, grocery, agriculture and ingredients businesses, said it now expected 2022-23 adjusted operating profit and adjusted earnings per share broadly in line with the previous year.
It had previously forecast adjusted operating profit lower than the £1.44 billion (€1.62 billion) made in 2021-22.
For the half year to March 4, AB Foods said total sales were expected be more than 16% ahead of the previous year at constant currency, with adjusted operating profit broadly in line with the previous year.
Primark's first half sales were expected to be £4.2 billion (€4.73 billion), up 16% at constant currency, with adjusted operating profit margin now expected to be above 8%.
Read More: Associated British Foods Says Higher Costs To Weigh On 2022-23 Performance
Performance By Division
AB Foods said that its Food business is seeking to counteract inflation through cost-cutting measures and implementing price hikes. For the first half of the year, both overall sales and adjusted operating profit are anticipated to surpass last year's figures, although with a reduced margin.
Its Ingredients segment is projected to generate significantly higher adjusted operating profit due to improved trading, the group said, while its Grocery division's adjusted operating profit is predicted to be marginally lower than the previous year, as input costs inflation continues to outpace pricing and cost-saving initiatives.
It added that Primark traded 'very well' for the half year period, with its sales performance higher than the same period last year at actual exchange rates and 16% ahead at constant currency.
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