Associated British Foods PLC (LSE:ABF) announced in a trading update today that it expects sales and operating profit for the half-year to be significantly ahead of a COVID hit 2021.
The company, which owns Primark, also said sales and profits are to be ahead of the same period pre-covid.
The statement said Primark sales are expected to be 60% ahead of last year, with all stores globally remaining open for the six months up to 5 March, with the exception of short closures in Austria and The Netherlands.
It added that inflationary and supply chain issues for the high street store had been largely mitigated by a “reduction in store operating costs and overheads and a favourable US dollar exchange rate.”
The London-listed company said that its food businesses, which include grocery, agriculture and ingredients, were also hit with inflationary pressures, which it attempted to offset with operational cost savings and the implementation of prices rises.
It anticipates margin reduction in grocery, agriculture and ingredients in the first of the year, but expects to deliver on its plans to recover some of the losses in the next six months.
The company expects further growth in the second half of the year, and has kept the outlook for the year unchanged, with “significant progress” expected in adjusted operating profit and earnings per share.
Shares in AB Foods were down 3.06% in late morning trading, changing hands at 1897p.