Primark owner Associated British Foods said on Thursday that both revenues and profits had improved over the 12 months ending 17 September, principally due to the cessation of certain Covid-19 restrictions.
ABF stated full-year group revenues will be “well ahead” of last year and said it was also on track to deliver a “significant increase’ in adjusted operating profits and adjusted earnings per share.
The FTSE 100-listed firm said sales growth over last year increased during the fourth quarter, demonstrating price actions, while improved trading at ABF Ingredients was now expected to deliver higher operating profits.
Primark total sales were predicted to be roughly £7.7bn, roughly 40% higher year-on-year at constant currency, driven by increased Q4 sales in the UK and a predicted full-year operating margin of 9.6%.
“Group revenue for the year will be well ahead of last year. In our food businesses, higher revenues reflect price actions and some volume increases, especially in Ingredients. In Primark, the much higher revenues reflect the ending of Covid-related restrictions and the resumption of more normal customer behaviour. Adjusted operating profit for the Group will be significantly ahead of last financial year, in line with our expectations,” said ABF.
“Our outlook for significant progress in adjusted earnings per share this financial year for the Group remains unchanged.”
Reporting by Iain Gilbert at Sharecast.com
