Primark owner Associated British Foods PLC (LSE:ABF) gets a Christmas boost ahead of its trading update, according to Citigroup.
Analysts at the US investment bank highlighted a strong December in the UK should result in a 15% increase in sales at Primark, largely driven by non-discretionary Christmas spending and pent-up demand.
International performance should also come in stronger on a Covid/Omicron comparison basis, driving “back-ended profit growth”.
Citigroup forecasts 14% growth in ABF’s food business, largely driven by inflation, currently around 16.4%.
On the back of the analyst's first-quarter forecasts, full-year 2023 adjusted underlying earnings (EBITDA) estimates are raised by £35mln to £1.34bn.
Adjusted earnings per share forecasts were also raised to 122p from 118p on the back of ABF’s phased £500mln share buyback, which was announced in November.