Associated British Foods PLC (LSE:ABF), the owner of Primark, has said its outlook for the full year is unchanged ahead of its annual general meeting (AGM) taking place on Friday.
In a trading update to be delivered at the meeting, AB Foods chairman Michael McLintock told shareholders that the group continues to expect further input cost inflation, but that the volatility of the costs has diminished.
As a result, adjusted operating profit and adjusted earnings per share will be lower than reported in last month's full-year results, although the FTSE 100-listed firm still expects significant growth in sales, he added.
The company reported an adjusted operating profit of £1.4bn and adjusted earnings per share of 131.1p for its full year to 17 September 2022.
Trading at Primark in the current financial year has been “encouraging”, with 27 new stores to be opened over the next 12 months. McLintock noted. So far, Primark has opened six new stores, including one today in Angers, France, with 10 in total to open in the run-up to Christmas.
The chairman said AB Foods expects the aggregate profit of its food businesses to be ahead of the last financial year.