Associated British Food raised its full-year profit outlook as weaker-than-expected fourth-quarter sales at Primark were offset by strong profit margins in the fashion business and a solid performance from its food and sugar divisions.
AB Foods said adjusted operating profit for its 2020-21 fiscal year, before repayment of job retention cash, would be marginally above last year excluding the benefit of a 53rd week this year. It had previously forecast it to be in line with the previous year’s £1bn.
The company added that fourth-quarter adjusted operating profit for its food businesses and discount clothing retailer Primark were anticipated to exceed its expectations, with sale expected to be around £3.4bn.
